Millions of Britons who get paid today should check their pay slip. 24 million people have received a cut in income tax this month, thanks to the Liberal Democrats in Governmen.
The Income Tax personal allowance has gone up from £8,105 to £9,440. Under Labour it was just £6,475.
Raising the tax-free allowance is the Liberal Democrats' flagship policy and has so far seen Income Tax bills slashed by £600 a year for millions of low and middle income workers compared to what they were paying under Labour. As a result, more than 2m people on low pay have been lifted out of paying Income Tax altogether. And the super rich are paying MORE tax.
The tax-free allowance will rise again next year to £10,000, fulfilling a commitment from the front page of the Liberal Democrats' 2010 General Election manifesto and resulting in a total tax cut of £700.
Liberal Democrat Chief Secretary to the Treasury, Danny Alexander commented: