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Post by northwestman on Mar 15, 2023 21:37:17 GMT 1
A stealth raid by Jeremy Hunt will net £120bn for the Treasury over the next five years as 3.2 million more people are forced to pay income tax.
Fiscal drag from high inflation and frozen tax thresholds mean the number of taxpayers in the higher-rate band will jump by 47pc, according to new calculations by the Office for Budget Responsibility, the Government’s spending watchdog.
This means an extra 2.1 million people will pay tax at 40pc. A further 350,000 workers will get hit by the 45pc additional tax rate.
Overall, the number of people paying income tax will increase by 3.2 million because the starting threshold is not going up – a 9pc rise.
This will boost the Treasury’s tax take by £12bn in the 2023-24 tax year, compared to if income tax and employer national insurance thresholds had been raised in line with inflation.
The tax take will increase steadily in years to come as more workers move into higher tax brackets. By the financial year ending in 2028, the stealth tax measures will be bringing in an extra £29.3bn for the Treasury.
Rishi Sunak froze the personal allowance and higher-rate tax thresholds in 2021 while he was Chancellor, but this freeze was only due to run until 2026. In November, Mr Hunt extended this freeze until the tax year ending in 2028.
Daily Telegraph.
The freezing of tax thresholds has been the number 1 issue for me for quite some time. Indeed, I have written to my M.P., Helen Morgan, protesting about this, and she agrees with me. But unfortunately as a Lib Dem M.P. she has little influence other than to voice both her own and her constituents' concerns to the Treasury, which she has done.
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Post by shrewinspain on Mar 16, 2023 8:15:48 GMT 1
The tax system really does need a proper overhaul - both the rates and the rules.
I actually think that the Tories have done a good thing in getting rid of the pensions cap as that was both massively complex and punitive. Now they need to address NI, allowances, and bandings.
Completely agree that bringing more people into the lower reaches of income tax is ridiculous - the stealth tax on the middle classes has a real impact on those at the bottom of the wages tree. Would be much better to have a higher starting point and an extra penny higher up - not only would that make much more tax revenue; it would actually save HMRC and the benefits system a lot of effort.
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Post by davycrockett on Mar 16, 2023 10:44:06 GMT 1
The tax system really does need a proper overhaul - both the rates and the rules. I actually think that the Tories have done a good thing in getting rid of the pensions cap as that was both massively complex and punitive. Now they need to address NI, allowances, and bandings. Completely agree that bringing more people into the lower reaches of income tax is ridiculous - the stealth tax on the middle classes has a real impact on those at the bottom of the wages tree. Would be much better to have a higher starting point and an extra penny higher up - not only would that make much more tax revenue; it would actually save HMRC and the benefits system a lot of effort. Re Pension caps only affects those that currently reach the cap, which is less than 1%…. Reasons given to help stop doctors being forced to retire. They’d have to have a pension pot worth over £50k a year…..oh and they haven’t increased the max tax free lump sum you can take so you can exceed the existing cap but only towards generating income. |
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Post by staffordshrew on Mar 16, 2023 12:44:40 GMT 1
Couldn't just do the fairer option of raising pensions life time allowance AND tax thresholds by inflation could he?
As for stealth tax, prices are up, so his VAT take is up. Easy money if you can get it.
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Post by northwestman on Mar 16, 2023 13:09:47 GMT 1
labourlist.org/2021/03/why-is-labour-not-opposing-rishi-sunaks-personal-allowance-freeze/Labour did not originally oppose the personal allowances freeze. But then it did! Labour will oppose the Government's decision to freeze the income tax personal allowance just days after the shadow chancellor claimed it would not “stand in the way”. In a major U-turn, Lisa Nandy, the shadow foreign secretary, said on Sunday that the party would vote against the “stealth” tax raid because it was “absolutely the wrong time” to be squeezing lower and middle income workers’ earnings. It came just three days after shadow chancellor Anneliese Dodds claimed the party would not oppose the policy because it would be more targeted at “better off people”. "In the future we’re not going to oppose change to that personal allowance,” she said on Thursday last week. “When that takes place it’s going to have more of an impact on better off people than worse off people.” Really gives you confidence in them doesn't it?
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Post by staffordshrew on Mar 16, 2023 13:24:25 GMT 1
labourlist.org/2021/03/why-is-labour-not-opposing-rishi-sunaks-personal-allowance-freeze/Labour did not originally oppose the personal allowances freeze! But then it did! Labour will oppose the Government's decision to freeze the income tax personal allowance just days after the shadow chancellor claimed it would not “stand in the way”. In a major U-turn, Lisa Nandy, the shadow foreign secretary, said on Sunday that the party would vote against the “stealth” tax raid because it was “absolutely the wrong time” to be squeezing lower and middle income workers’ earnings. It came just three days after shadow chancellor Anneliese Dodds claimed the party would not oppose the policy because it would be more targeted at “better off people”. "In the future we’re not going to oppose change to that personal allowance,” she said on Thursday last week. “When that takes place it’s going to have more of an impact on better off people than worse off people.” Really gives you confidence in them doesn't it? Well, let's check the facts. When labour didn't oppose the freeze, inflation was a few per cent, the NHS and social care needed sorting. Now inflation is double digit, so the effect on taxpayers of not raising thresholds is magnified and the NHS and social care haven't been sorted, the rich have just been made richer. |
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Post by northwestman on Mar 16, 2023 16:21:07 GMT 1
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Post by staffordshrew on Mar 16, 2023 19:51:56 GMT 1
It's back to school for Jeremy? Must try harder! |
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Post by staffordshrew on Mar 16, 2023 20:30:12 GMT 1
By the time we get to 2026, anyone with a works pension of greater than a trivial £1000 per annum on top of state pension will be a taxpayer. Those of working age working full time on minimum wage are already taxpayers. That surely can't be sensible or fair? |
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Post by northwestman on Mar 16, 2023 20:46:42 GMT 1
By the time we get to 2026, anyone with a works pension of greater than a trivial £1000 per annum on top of state pension will be a taxpayer. Those of working age working full time on minimum wage are already taxpayers. That surely can't be sensible or fair? Don't forget that Hunt has extended the freeze until 2028. Labour should be making far more of this than they are, concentrating instead on the pensions savings tax cut which benefits about 1% of the population. |
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Post by northwestman on Mar 16, 2023 20:48:30 GMT 1
By 2028, there's a very good chance that some will be paying tax on their State Pensions!
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Post by northwestman on Apr 14, 2023 16:20:59 GMT 1
I've just had confirmation from Teachers Pensions that I'll be paying an extra £38 a month this year because of the freeze on personal allowances meaning they are not going up with inflation. This lasts until 2028, so things are only going to get worse! Yet so many are still unaware of the existence of this stealth tax, whereas if they'd said they were putting up income tax then there would have been far more of a reaction. But this stealth tax does just that, and will rake in over £120 billion for the government in the next 5 years. www.mirror.co.uk/money/millions-workers-pay-more-tax-29473434 |
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rob62
Midland League Division Two
Posts: 210
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Post by rob62 on Apr 14, 2023 20:33:05 GMT 1
The starting rate at which people start to pay tax needs raising to at least 15k to help people cope with cost of living crises.
If the Tories want to avoid anihalation at the next election they must make serious moves to help hard working families earning modest wages.
I expect the next budget will be a "give away", the question is who do they help.... Those who deserve it or their rich mates
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Deleted
Deleted Member
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Post by Deleted on Apr 15, 2023 13:29:27 GMT 1
No mention that all public sector pensions have risen by 10.1%.
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Post by davycrockett on Apr 15, 2023 18:29:23 GMT 1
No mention that all public sector pensions have risen by 10.1%. Yes it almost covers the increase in energy bills with the end of the government help but could have been worse if they’d renegade on their manifesto pledge again I guess. |
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Post by staffordshrew on Apr 16, 2023 18:44:19 GMT 1
I've just had confirmation from Teachers Pensions that I'll be paying an extra £38 a month this year because of the freeze on personal allowances meaning they are not going up with inflation. This lasts until 2028, so things are only going to get worse! Yet so many are still unaware of the existence of this stealth tax, whereas if they'd said they were putting up income tax then there would have been far more of a reaction. But this stealth tax does just that, and will rake in over £120 billion for the government in the next 5 years. www.mirror.co.uk/money/millions-workers-pay-more-tax-29473434Surely your after tax take home pension will rise by 10%? Factor in the end of the £67 pounds a month energy payment and the rise in Council Tax and you will probably be not too much worse off, but add in the cost of things in the shops and beer money is going to be tight. Beer, of course, will also go up on price. The sqeeze is on! |
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Post by northwestman on Apr 17, 2023 15:18:47 GMT 1
I've just had confirmation from Teachers Pensions that I'll be paying an extra £38 a month this year because of the freeze on personal allowances meaning they are not going up with inflation. This lasts until 2028, so things are only going to get worse! Yet so many are still unaware of the existence of this stealth tax, whereas if they'd said they were putting up income tax then there would have been far more of a reaction. But this stealth tax does just that, and will rake in over £120 billion for the government in the next 5 years. www.mirror.co.uk/money/millions-workers-pay-more-tax-29473434Surely your after tax take home pension will rise by 10%? Factor in the end of the £67 pounds a month energy payment and the rise in Council Tax and you will probably be not too much worse off, but add in the cost of things in the shops and beer money is going to be tight. Beer, of course, will also go up on price. The sqeeze is on! The £67 a month energy payment is no more. I do now get a 25% single person's discount off my Council Tax, but that's only because my partner died in February. |
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Post by staffordshrew on Apr 17, 2023 15:52:24 GMT 1
Surely your after tax take home pension will rise by 10%? Factor in the end of the £67 pounds a month energy payment and the rise in Council Tax and you will probably be not too much worse off, but add in the cost of things in the shops and beer money is going to be tight. Beer, of course, will also go up on price. The sqeeze is on! The £67 a month energy payment is no more. I do now get a 25% single person's discount off my Council Tax, but that's only because my partner died in February. Sorry to hear that, RIP. |
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Post by northwestman on Apr 26, 2023 11:20:05 GMT 1
The Government’s stealth raid on household finances through a combination of falling and frozen tax thresholds means millions more people will pay more than ever on the money they earn and the assets they’ve accumulated. Research from the Resolution Foundation has found that the Chancellor's stealth taxes will cost households £25bn – three times higher than predicted.
It is also worth remembering that the reason we are all having our pockets picked like never before is because the Government is scrambling to plug the gaps created by its own profligate past.
Daily Telegraph.
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Post by staffordshrew on Apr 26, 2023 12:12:33 GMT 1
The Government’s stealth raid on household finances through a combination of falling and frozen tax thresholds means millions more people will pay more than ever on the money they earn and the assets they’ve accumulated. Research from the Resolution Foundation has found that the Chancellor's stealth taxes will cost households £25bn – three times higher than predicted. It is also worth remembering that the reason we are all having our pockets picked like never before is because the Government is scrambling to plug the gaps created by its own profligate past. Daily Telegraph. Telegraph readers, take note. (Though I doubt they will). |
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Post by northwestman on May 16, 2023 15:43:43 GMT 1
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