Bowmore Wealth Group reports on the upper echelon of fiscal drag – 634 000 UK taxpayers who now find themselves paying an effective 60% rate of income tax on earnings between £100 000 and £125 140 given the effect of the withdrawal of the income tax personal allowance (figures for 2023/24).
Mark Incledon CEO at Bowmore Financial Planning said: ‘The number of taxpayers falling victim to this notorious tax trap was already incredibly large – recent wage inflation has pushed almost 100 000 more into this position.
‘It’s very surprising the Government chose to not address this in the latest Budget – the effective tax rate for those earning £100k-125k is known by HM Treasury officials but they’ve chosen not to address it.
‘The long-term effect of leaving the tax trap issue unresolved is that it disincentivises hard work. People are far less likely go the extra mile and push...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Bowmore Wealth Group reports on the upper echelon of fiscal drag – 634 000 UK taxpayers who now find themselves paying an effective 60% rate of income tax on earnings between £100 000 and £125 140 given the effect of the withdrawal of the income tax personal allowance (figures for 2023/24).
Mark Incledon CEO at Bowmore Financial Planning said: ‘The number of taxpayers falling victim to this notorious tax trap was already incredibly large – recent wage inflation has pushed almost 100 000 more into this position.
‘It’s very surprising the Government chose to not address this in the latest Budget – the effective tax rate for those earning £100k-125k is known by HM Treasury officials but they’ve chosen not to address it.
‘The long-term effect of leaving the tax trap issue unresolved is that it disincentivises hard work. People are far less likely go the extra mile and push...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
2734558d-601b-48a3-8ae3-ae3513a00429.tmb-editorspic.jpg?sfvrsn=1fc4692d_1)
