You are here: Home - Household Bills - News -

Call for rise in 40p tax threshold

0
Written by:
29/10/2012
A report is calling for the 40p income tax threshold to be raised to stop hundreds of thousands of extra people falling into the bracket.

The report claims that tax thresholds are not being raised in line with wages meaning that, while 3.7 million taxpayers paid the 40p rate last year, this figure will rise to five million by 2014, reports the Daily Mail.

Motivating The Middle has been published by Conservative MPs Kwasi Kwarteng and Priti Patel.

It argues the problem has been caused by the threshold rising slower than earnings under New Labour, and the level at which 40p tax falls has then been lowered by Chancellor George Osborne as he raises the tax-free personal allowance.

The 40p tax threshold is due to fall again to £41,450 next year, for most earners, from its current £42,475 level.

Kwarteng said: ‘When Lloyd George brought in his ‘supertax’ in 1909, it was only paid by those on around the equivalent of £500,000 a year. Now the higher rate of 40% income tax is increasingly paid by those in the middle class.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2220524-fireworks-image
Remember remember, accidents can happen this 5th of November

Brits are being urged to make sure that their home insurance policy includes adequate personal liability protection to cover any...

Close