🚨 Possible Income Tax Hike Alert! 🚨 Chancellor Rachel Reeves has dropped hints that an increase in income tax could be on the cards in the upcoming Budget. While the move isn’t set in stone, it’s got everyone buzzing about potential impacts on their wallets! 💷
Reeves suggests we “all have to contribute” to rebuild the economy, focusing on reducing debt, supporting the NHS, and tackling the cost-of-living crisis. What might this mean for you? Well, if you earn less than £125,140, your take-home might stay similar thanks to a potential National Insurance cut balancing things out. But pensioners and landlords might not be so lucky. 📉
The plan speculated is a 2p rise in income tax offset by a 2p cut in National Insurance. The Resolution Foundation estimates this could generate around £6 billion a year. However, pensioners and landlords, who generally don’t pay National Insurance, could see higher tax bills. 📈
👉 A pensioner with a £27,500 income could pay an extra £298 annually.
👉 Someone earning £35,000 might face an extra £450.
👉 Landlords making £50,000 in rental profit might have to part with an extra £750 yearly.
These potential changes come as many pensioners are already being dragged into the tax bracket due to frozen thresholds, with the new state pension expected to reach just under the tax-free personal allowance next April.
🔍 What’s your take? Are you concerned about these potential changes? Let us know in the comments! 💬
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