💷 Heads up, folks! A new “stealth tax” warning is here, and it might just hit your wallet. Experts from the Resolution Foundation have crunched the numbers, and if you’re earning under £35k a year, get ready for some changes. 📉
Starting soon, the government is freezing income tax thresholds until 2031. This means many will end up forking out an extra £150-£200 annually. As salaries inch up, more of our pay will be taxed, thanks to something called “fiscal drag.” Not a fan? Neither are we! 😟
The freeze keeps the personal allowance at £12,570, with the higher 40% rate kicking in at £50,270. If you’re on around £33k, expect to see about £175 less in your pocket each year, and if you’re closer to £35k, it’s roughly £200. 😬
While the government did announce a few perks, like lowering standard energy bills by about £130 a year for three years, the Resolution Foundation says these benefits don’t quite balance out the impact on less affluent families.💡
Oh, and here comes the kicker: The bigger tax burden aims for a whopping £77 billion extra in taxes over five years, with some serious spending cuts in the mix too. 🏦
Ruth Curtice from the Resolution Foundation sums it up: sticking to tax pledges without addressing threshold freezes is costing low-to-middle earners big time. 🌧️
So, what do you think? Feeling the pinch or hoping for sunshine in the next Budget? 😅
#Budget2025 #TaxAlert #StealthTax #CostOfLiving #UKFinance