| UPDATED: 14:43, Tue, Feb 9, 2021
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HMRC, formally known as Her Majesty’s Revenue and Customs, helps millions of people with their tax affairs each year. As the new tax year draws closer, the Revenue has provided an important update to Britons which may include vital changes. A new tax year will often mean people will need to consider what they are due to earn, and subsequently how much tax they are set to pay.
In the 2021/22 tax year, Income Tax Personal Allowance, alongside Higher Rate Threshold, will increase in line with the September Consumer Price Index (CPI) figure.
CPI is otherwise known as inflation, which means people can expect an increase to Personal Allowance of 0.5 percent.
The new tax year is scheduled to start on April 6, 2021, meaning an increase to Personal Allowance is just months away.
The government also stated the inflation figure will be used to set National Insurance limits and thresholds, alongside Class Two and Three National Insurance contributions for the new tax year.
Personal Allowance: The sum will rise in accordance with inflation (Image: Getty)