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.
Chancellor cuts basic income tax by 2p
The chancellor has unveiled plans for a two per cent cut in basic income tax in a Budget which he claimed would "expand prosperity and fairness for Britain's families".Speaking in what is widely expected to be his last Budget, Gordon Brown delivered his 11th set of economic plans to parliament, focussing on families, business prosperity, home security and the environment.In a sweeping range of mea...Read More
Why is it so expensive to live in the UK?
Despite the fact that the UK has readily accessible supplies of oil, a well-developed energy network and expertise in the field of renewable energy it seems that the cost of living in the UK, especially energy bills, continues to rise. Since the privatisation of electricity, gas and water companies we have seen a conflict of interest emerge between consumers and businesses and shareholders.
HMRC targets worldwide sport stars
In a move which could decimate the UK sporting calendar it is been revealed that HM Revenue and Customs (HMRC) has introduced a number of new taxes on worldwide sport stars who attend UK events. We are already seeing a number of worldwide sport stars staying away from UK events as the government is set to impose levies on money from endorsements and bonus related payments. One example which ill...Read More
David Cameron could scrap 50p top tax rate
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Will China mark the end of the worldwide recession?
While all eyes have been on the US economy as the bellwether of the worldwide economy, many people have failed to appreciate and monitor the Chinese economy which has of late become as important to the worldwide economy as the US. China has seen many changes over the last 20 years and has become more a part of the worldwide trade market than at any other time in its history. As a consequence, the...Read More