This will be the death of the Tories. The freezing of tax brackets are going to make middle earners 15% worse off alone.
The higher rate (40%) tax band has been the Government’s secret tax increase for years. When it came in it targeted fewer people but over the years inflation has pushed more and more people into the tax band (I think it starts at about £50,000 counting personal allowance). They did start increasing the start of the band after Cameron but Sunak stopped it because it’s such an easy way to put tax ‘up’ without putting it up.
If the tax bands do not track inflation upwards every year then you are having a year on year tax increase.
Both my wife and I pay higher rate tax, and let’s not forget that you totally lose child benefit at a certain point too.
Sadly, long gone are the days when an income over 50k automatically made you well off, particularly in London or the South East. Where I live a basic 3 bedroom house is nudging 800k. Yet I’m taxed at 40% for daring to earn over 50k. Nuts.
I have other forms of income in addition to my job, and let’s just say I’m becoming increasingly creative with my tax affairs.
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Tax is the main cause of poverty.
This will be the death of the Tories. The freezing of tax brackets are going to make middle earners 15% worse off alone.
The higher rate (40%) tax band has been the Government’s secret tax increase for years. When it came in it targeted fewer people but over the years inflation has pushed more and more people into the tax band (I think it starts at about £50,000 counting personal allowance). They did start increasing the start of the band after Cameron but Sunak stopped it because it’s such an easy way to put tax ‘up’ without putting it up.
If the tax bands do not track inflation upwards every year then you are having a year on year tax increase.
Both my wife and I pay higher rate tax, and let’s not forget that you totally lose child benefit at a certain point too.
Sadly, long gone are the days when an income over 50k automatically made you well off, particularly in London or the South East. Where I live a basic 3 bedroom house is nudging 800k. Yet I’m taxed at 40% for daring to earn over 50k. Nuts.
I have other forms of income in addition to my job, and let’s just say I’m becoming increasingly creative with my tax affairs.