What if you didn’t pay income tax on your first £18,000?

What if you didn’t pay income tax on your first £18,000? It's an idea that's been getting some discussion recently, certainly with change at Downing Street. But let's have a look and see what that actually means for the average person. So at the moment, for most people, if not all, you can earn up to £12,570, that's your tax-free amount before you actually start paying income tax. Now, nothing has been announced and nothing has changed at this point. But I know certainly from the comments that if these actually moved, I think a lot of people would feel some benefit. So for someone earning above £18,000 a year, it could mean keeping around £1,086 more each year – roughly £90 a month. For many households, that could make a real difference. The bigger question is… How would the government replace the lost tax revenue? I’m not here to talk about that. I'm just trying to simply explain what it could mean if a change like that ever came into policy because understanding the numbers really helps make us more informed decisions. So am I what you think? For a lot of people, £90 a month could make a bit of a difference. So it's £90 towards food shop, it's filling the car up with fuel, it could go into savings. So if you're just managing now, it could give you the opportunity to actually save something. It could be mean relying less on the credit card to get through the month. But there's another side to the conversation, which I guess is the bigger question for me, is how that money would be replaced. That's an important part of the decision too, because at the moment we are taxed so much on everything, if they were to move it to £18,000, they're going to have to replace that money somehow. I'm not saying it will happen, but I'm not saying it should, but there's the bigger question on the other side of it.