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.
Have we seen the top of the sporting market?
For many years experts have been concerned that sporting salaries, especially in the field of football, have risen far too quickly to levels which for many teams would eventually lead to commercial suicide. The English Premier league brand-name for one has continued to grow and grow despite these reservations although it appears that the collapse of Setanta has injected a sharp dose of reality int...Read More
Banking sector set to move back into the black
With HSBC and Barclays bank set to kick off the bank reporting season we are hearing rumours that both of these companies will report impressive figures and a return to the black. However, as we covered in one of our recent articles, there is some debate as to how best the banks should tackle the ongoing situation in the UK. Do they come out with excessively upbeat statements, and try to kick UK c...Read More
Alistair Darling targets UK banks yet again
The continuous onslaught of negative press and negative headlines in relation to the UK banking sector continues today with Alistair Darling accusing the banks of a "kamikaze" attitude in relation to loans. He believes that the reckless lending of various banks in the UK, and around the world, ultimately led to the credit crunch and the ongoing recession which we are feeling now. But is the govern...Read More
Are regulators powerless to control UK mortgage providers?
The Daily Mail investigation which alleges that the average UK mortgage is now £1800 a year more expensive than it should be, due to the fact that UK banks have yet to pass on significant cost savings, has put the UK regulators back in the spotlight. While the UK government, and indirectly the UK taxpayer, continue to invest millions and millions of pounds into the regulatory regime governing the...Read More
40,000 UK companies have requested a tax payment extension
It has been revealed that a record 40,000 UK companies have asked the UK authorities for an extension during which to pay their tax liabilities. The move has surprised many people but will test the government's resolve and promise to assist companies throughout the UK. In total it is estimated that £650 million of corporation tax, VAT, PAYE, income tax and national insurance payments are due to t...Read More