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Post by northwestman on Mar 13, 2024 15:55:40 GMT 1
I've commented frequently on the unfairness of freezing personal tax allowances as being a 'stealth tax' But until reading this article, I wasn't understanding as to why all insurances have gone up by over 50% this year without any real scrutiny. www.thisismoney.co.uk/money/mailplus/article-13188871/The-8-2bn-stealth-tax-family-Britain-paying.htmlThe profits and share prices of the country’s major insurance companies are booming as they impose ever-higher premiums on customers. But it’s not just the insurers that are reaping the rewards of this premium bonanza — the Government is also rubbing its hands in glee. Figures released by the Office for Budget Responsibility (OBR) — in response to the Chancellor of the Exchequer’s Budget — show that the taxes the Government is generating from insurance premiums are currently higher than from much despised inheritance tax. The current revenue from insurance premium tax (IPT) levied on sales of most types of insurance cover stands at a staggering £8.2 billion a year — £0.6 billion more than the tax raid on family inheritances, and not far behind the tax obtained from tobacco sales (£8.8 billion). In very simple terms, the bigger premiums that insurers charge their customers, the greater the Government’s tax-take.
In the tax year ending April 2023, IPT receipts totalled £7.5billion while ten years ago, in the tax year ending April 2014, they were just a tad over £3billion. Furthermore, according to the OBR, the annual tax grab from IPT will continue to rise over the next five years to £8.8 billion in the tax year ending April 2029. Some also passionately argue that the Government has deliberately turned a blind eye to rampant insurance premiums because higher prices mean a greater tax-take. IPT is currently charged at 12 per cent on mainstream policies such as household, motor, private medical and pet cover. Some covers, such as travel insurance, attract a 20 per cent charge. The latest data from comparison website Confused.com shows that the average cost of car insurance is now £995 — 58 per cent higher than a year ago. Prices, the firm says, are at their highest level since it started compiling data 18 years ago. Both the young and old are bearing the brunt of this surge in premiums. |
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Post by Deleted on Mar 13, 2024 21:18:32 GMT 1
I've commented frequently on the unfairness of freezing personal tax allowances as being a 'stealth tax' But until reading this article, I wasn't understanding as to why all insurances have gone up by over 50% this year without any real scrutiny. www.thisismoney.co.uk/money/mailplus/article-13188871/The-8-2bn-stealth-tax-family-Britain-paying.htmlThe profits and share prices of the country’s major insurance companies are booming as they impose ever-higher premiums on customers. But it’s not just the insurers that are reaping the rewards of this premium bonanza — the Government is also rubbing its hands in glee. Figures released by the Office for Budget Responsibility (OBR) — in response to the Chancellor of the Exchequer’s Budget — show that the taxes the Government is generating from insurance premiums are currently higher than from much despised inheritance tax. The current revenue from insurance premium tax (IPT) levied on sales of most types of insurance cover stands at a staggering £8.2 billion a year — £0.6 billion more than the tax raid on family inheritances, and not far behind the tax obtained from tobacco sales (£8.8 billion). In very simple terms, the bigger premiums that insurers charge their customers, the greater the Government’s tax-take.
In the tax year ending April 2023, IPT receipts totalled £7.5billion while ten years ago, in the tax year ending April 2014, they were just a tad over £3billion. Furthermore, according to the OBR, the annual tax grab from IPT will continue to rise over the next five years to £8.8 billion in the tax year ending April 2029. Some also passionately argue that the Government has deliberately turned a blind eye to rampant insurance premiums because higher prices mean a greater tax-take. IPT is currently charged at 12 per cent on mainstream policies such as household, motor, private medical and pet cover. Some covers, such as travel insurance, attract a 20 per cent charge. The latest data from comparison website Confused.com shows that the average cost of car insurance is now £995 — 58 per cent higher than a year ago. Prices, the firm says, are at their highest level since it started compiling data 18 years ago. Both the young and old are bearing the brunt of this surge in premiums. My car insurance has gone up this year, but last year it actually went down a small amount, so a rise was expected this year. However seeing some younger drivers quoted several thousands of pounds is concerning. Back in the day you used get cheaper 3rd party, fire and theft policies and some companies even offered 3rd party only. Just been checking and 3rd party only for my car is actually twice the price of fully comp. How the hell does that work? It's little wonder that people are risking driving without insurance. |
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Post by staffordshrew on Mar 14, 2024 14:00:16 GMT 1
Car tax set to go up too. The bank of England stalling on interest rate reductions. Energy cap set to go down, but I bet energy costs are still a lot higher than a few years ago. Inflation rate dropping, but that's on top of prices that have gone up massively over the last couple of years. In high finance technical language, the British public is getting screwed in every direction.
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Post by staffordshrew on Mar 14, 2024 21:38:09 GMT 1
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Post by MartinB on Mar 18, 2024 22:54:22 GMT 1
and do remember when they put National Insurance up they said it wasn't a tax rise so can't be a tax cut when they reduce it |
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Post by martinshrew on Mar 19, 2024 10:35:00 GMT 1
I'll be upwards of 4 figures a year better of, though no idea how the stealth tax would affect me in terms of tax freezing.
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Post by wookeywombat on Mar 19, 2024 12:44:10 GMT 1
I'll be upwards of 4 figures a year better of, though no idea how the stealth tax would affect me in terms of tax freezing. Is that £10.01 better off? |
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Post by martinshrew on Mar 19, 2024 13:06:40 GMT 1
I'll be upwards of 4 figures a year better of, though no idea how the stealth tax would affect me in terms of tax freezing. Is that £10.01 better off? To me, that's two figures. |
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Post by northwestman on Mar 28, 2024 11:13:49 GMT 1
Pensioners will be just £20 better off in real terms this year after their triple lock increase was all but wiped out by Jeremy Hunt’s stealth tax raid, a leading think tank has said.
An 8.5pc rise in the state pension will leave retirees £190 better off in the next tax year after adjusting for higher prices, the Resolution Foundation said.
This will be offset by the Chancellor’s six-year freeze in income tax thresholds, which will cost pensioners £170 – meaning they stand to gain just £20 overall.
Daily Telegraph.
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Post by staffordshrew on Mar 31, 2024 10:28:17 GMT 1
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Post by Deleted on Jun 13, 2024 12:40:35 GMT 1
www.theactuary.com/2024/06/13/state-pension-could-go-bust-2035A stark warning about the sustainability of the state pension. The fact that they paid a pittance to receive a much more valuable benefit doesn’t seem to be relevant when there are howls of derision at any suggestion the triple lock will rightly be watered down. ''The institute says the next government should consider means testing, using a double lock (removing inflation from the triple lock), or linking the payout to a fixed proportion of annual wages''.
All very well if you're earning a decent wage at the moment, but what about those struggling in low paid jobs? Are they supposed to stay poor all their working life and then get even poorer when they eventually get around to retirement?
Typical of a Thatcherite, neo-liberal think tank like the Adam Smith Institute to give no consideration to the needs of the vast majority of people in this country.
In one respect they are right they are right, the country as it is currently cannot afford to keep up the level of state pensions. Perhaps someone other than standard and higher rate tax payers should be made to pay more, you know the firms that spend millions of pounds every year lobbying politicians and paying accountants to find ways of not paying many more millions more in UK taxes.
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Post by armchairfan on Jun 13, 2024 17:50:29 GMT 1
As for the State Pension, I blame that old fraud David Lloyd George for the present situation.
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Post by Worthingshrew on Jun 13, 2024 20:01:15 GMT 1
As for the State Pension, I blame that old fraud David Lloyd George for the present situation. Didn’t realise you were THAT old! |
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Post by armchairfan on Jun 14, 2024 8:57:04 GMT 1
As for the State Pension, I blame that old fraud David Lloyd George for the present situation. Didn’t realise you were THAT old! Joking apart, my mother's family were actually friends of his.... |
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