New income tax rate set at 45%
The government has today introduced the new 45% tax rate for those earning over £150,000 per year but this is not planned to come into force until 2011. This has caused obvious concern within the Conservative party and while they have not commented specifically on the new tax, for fear of falling into a government trap, there are grave concerns that Conservative supporters will demand a clear strategy for the new income tax band.
This appears to be more of a political move that a fiscal move with the new tax band only affecting the top 1% of taxpayers in the UK and said to only raise a paltry £4 billion. At the same time as introducing this new tax rate the government has also confirmed that each basic rate taxpayer will be £145 better off next year due to changes in the tax bands. It is hoped that consumers will use this increased income wisely and it should hopefully instigate some form of economic recovery.
The Chancellor has caught many people off guard with his tax changes even though a number of the main ones where already leaked to the press. The 45% tax rate band had been kept under wraps until late last night and appears to have gone down well with traditional Labour supporters.
UK pubs closing at rate of 52 week
The British Beer and Pub Association (BBPA) has issued a report this week which confirms that 52 pubs are going out of business each week at a cost of 24,000 jobs over the past 12 months. Since the onset of the recession nearly 2500 pubs and bars in UK have disappeared and the situation could well continue for some time to come. A mixture of increased taxes, higher business rates and lower beer sa...Read More
American Express suspends contributions to UK pension scheme
In a move which many people hope will not be replicated across the UK business sector, American Express has today announced that company contributions into the UK final salary pension scheme have been suspended. The U.S.-based giant has, like so many other financial companies, suffered during the recession and confirmed plans to stop matching employee contributions for the next 18 months, somethin...Read More
More upward movement in UK mortgage rates
The Nationwide and Barclays bank have today announced an imminent increase in their mortgage rates as the upward spiral in the sector continues to gather pace. Nationwide will be increasing over 30% of its mortgage deals by up to 0.86% which is on top of the recently announced increases. Barclays on the other hand is moving its fixed mortgage rate up by around 0.7% with many homeowners and potenti...Read More
What tax rises can we expect in the future?
As the UK budget deficit continues to grow it is becoming more and more evident that UK taxpayers will be footing the bill in the short to medium term. With many analysts expecting the forecast £175 billion budget deficit to be nearer £220 billion for the full tax year, what can you expect to be hit with in the years to come?
The most obvious tax which will increase in the short t...
Car Insurance “11pc cheaper than a Year ago”
New research has suggested that motorists are experiencing car insurance renewal prices that are 11pc lower than this time last year, as the insurance industry succumbs to increased competition between insurers. Many companies throughout 2012 have adopted the strategy of offering new customers reduced rates in the hope to secure their money, while hiking the renewal prices of their current custome...Read More