Tax joy for MILLIONS of Britons – Osborne's budget will put £200 back in voters' pocket

A NEW deal by the coalition government is set to take hundreds of THOUSANDS of Britons out of income tax.

George Osborne is preparing to unveil a couple of crowd-pleasing cuts GETTY

George Osborne is preparing to unveil a couple of crowd-pleasing cuts

George Osborne is finalising a deal to raise the level at which workers start paying income tax "towards £11,000", The Sunday Times has reported.

The focus will be on lifting the poorest in society out of tax

Senior government source

If successful, the move would put between £160 and £200 back into voter's pockets ahead of the general election on May 7.

A senior government source told the newspaper: "The focus will be on lifting the poorest in society out of tax."

Income tax personal allowance is already set to jump from £10,000 to £10,600 in April.

But the coalition Chancellor now hopes to raise this figure by at least another £200.

"We want to move towards £11,000," the unnamed source added.

The final figure will be set later this week by Chancellor George Osborne, Prime Minister David Cameron, Deputy Nick Clegg and Chief Secretary to the Treasury Danny Alexander.

To compensate for the loss of hundreds of thousands of low income taxpayers, it is believed the budget will crackdown on multinational corporations avoiding tax in Britain.

Google, Facebook and Amazon and other companies accused of diverting profits from the UK to jurisdictions with lower tax are set to be hit by a punitive 25% fee – higher than the 20% corporation tax which is also due to begin this April. 

Dubbed the "Google Tax", it will be levied at companies judged to be side-stepping HM Revenue and Customs.

It is understood the Chancellor will force multinationals to reveal exact revenue and profit figures on a country-by-country basis, for the first time.

In a final crowd-pleasing move, Mr Osborne is believed to be planning a 2p cut to beer duty.

Senior Tory officials believe the popular cuts in the Budget will become the starting gun for the Conservative general election campaign.

Chancellor of the Exchequer George Osborne will deliver his Budget on March 18.

Would you like to receive news notifications from Daily Express?