Mullen Stoker - Durham Accountant, Business Advice, Tax Advice, Tax Returns, Durham, Uk

Posts Tagged ‘Tax Income’

Top 1.5 per cent of earners to pay £20bn more in income tax

Sunday, January 15th, 2017

The Chancellor

Half of all additional income tax collected by the Government by 2021 will be paid by the top 1.5 per cent of earners as hundreds of thousands of people are dragged into paying the top rate, figures have shown. Just 469,000 people earning more than £150,000 a year will account for almost £20 billion of additional income tax paid to the Treasury, a record high according to the Office for Budget Responsibility (OBR).

Senior Conservative MPs on the Treasury select committee called on Philip Hammond, the Chancellor, to look again at the tax system in the wake of the figures and warned that the burden should be spread more widely. The number of people paying the additional 45 percent rate has increased from 0.75 percent in 2010 to 1.1 percent today and will rise further to 1.5 per cent in 2021 as a result of the threshold being frozen by successive Chancellors. More people will pay no tax at all on their income in 2021 than those who pay the top rate, OBR analysis has shown. But there are fears that additional rate taxpayers may choose to move their money into incorporated companies instead, in order to avoid higher tax bills.The OBR estimates the Government may lose more than £3 billion in tax it expects to bring in from those earning more than £150,000 a year because of such a  shift.

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Inheritance tax payments reach record high: how to protect yourself

Sunday, January 8th, 2017

inheritance-tax-forms

The amount of the money the UK government has received from inheritance tax (IHT) has reached £4.7 billion for the year ending 31 October. This is up 11.9 per cent from a total of £4.2 billion in the year ending 31 October 2015.

According to Wilsons, a law firm that specialises in private client law (among others), more and more people’s estates are leaving the tax free threshold behind due to the inflation in house prices, along with a freeze on the threshold level itself.

Essentially, owners of modest homes have found themselves being grouped with the rich.

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