It’s not true that people earning less than £9,205 won’t pay tax from next year.

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The Coalition made much yesterday of taking millions out of tax as a result of plans to increase the personal allowance in 2013 to £9,205.

Like much that was said yesterday, that's not true. We don't know national insurance rates for sure as yet in 2013, but for 2012/13 anyone who earns more than £146 a week will pay NIC. That's £7,592. And NIC has always lagged behind income tax in this way so although it will go up in 2012, don't expect it to exceed £8,000. In addition, the Coalition has announced a review to plan merger of NIC and income tax. So the NIC limit is going to have much more impact.

In other words almost all of those who will supposedly fall out of tax as a result of yesterday's announcement of the increase in the personal allowance from £8,105 will, in fact, remain wholly within the tax net.

That's another Coalition claim shot to pieces.

And then let's also remember that they also pay VAT, fuel duty, and so much more. A little honesty would help.