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.
Has the government's credit card White Paper gone far enough?
The UK government announced a credit card White Paper last week which has been put forward as a consumer champion for the UK population. While there are some very interesting and very valid points made in the White Paper, such as ensuring that credit card holders know the order in which their debts will be repaid from their credit cards, there are many issues which still need to be addressed.
Children's bank accounts attract record low interest rates
It has been revealed that the differential between a child bank account in the UK and an adult bank account has widened significantly over the term of the ongoing recession. Children's accounts are now paying as little as 0.05% (i.e. five pence on every £100 saved) while the same bank may well be paying £1.60 on each £100 saved for adult accounts.
It would appear that this differ...
Tourist slump could cost UK £11 billion
A new report by Deloitte has cast shadows on the tourist industry suggesting that the UK and worldwide economic slowdown will dent UK income by somewhere in the region of £11 billion. The slowdown of visitors to the UK is also set to impact on employment numbers with around about 100,000 jobs currently at risk. There are also concerns about the forthcoming Olympics which are to be held in London...Read More
HMRC admits problems with some tax codes
After the Chartered Institute of Taxation warned of problems with some personal tax codes recently issued to the UK public HM Revenue and Customs (HMRC) has today issued its own statement. The Revenue has admitted that a number of incorrect tax code correspondence has in fact been sent out which was in the main due to the transition of data to a new computer system. It would appear that a numbe...Read More
Does the homeowners mortgage support scheme really help?
As the recession continues to bite into the UK property sector, more and more people are struggling to cover their monthly mortgage payments and looking for assistance. While the homeowners mortgage support scheme has been in place for some time there is some controversy regarding the basis on which the scheme operates.
In simple terms, households who see a significant drop in their...