All posts tagged: Income tax

King Charles ‘has nothing to hide’ as he makes history with royal first | Royal | News

King Charles ‘has nothing to hide’ as he makes history with royal first | Royal | News

Published by Sam Flores

Charles will publish his financial details as his royal household seeks to increase “clarity and accessibility” around the monarchy’s finances by producing a new report on the subject. The decision by the King, who has spent the week at Royal Ascot, is in contrast to the Prince of Wales, who has not disclosed the tax he has paid since becoming heir to the throne. Now, a royal commentator has heaped praise on the monarch for his bid for transparency when it comes to royal finances. The Telegraph’s Deputy Royal Editor, Victoria Ward, said that financial transparency “has long been considered a weak spot for the monarchy” and that Charles has made a “valiant attempt at turning the tide”. Ms Ward added that the decision has always been a “work in progress” for the monarch, who inherited an institution from his mother, the late Queen Elizabeth, whose “clandestine operations were deeply rooted in the decade-old mantra of ‘never complain, never explain’”. But the palace is said to hope that Charles’s actions will “clarify and contextualise” and …

Burnham: Income-tax freeze is harming pensioners

Burnham: Income-tax freeze is harming pensioners

Published by Sam Flores

Andy Burnham has warned that pensioners are being harmed by Labour’s freeze on income tax, and suggested he would revisit the policy if he becomes prime minister. The mayor of Greater Manchester, who is expected to return to Parliament next week, said he was concerned about retirees hit by the so-called “stealth tax” that Labour extended at the last Budget. The freeze on income tax thresholds allows the Government to raise extra revenue through a process known as fiscal drag, whereby people are forced into higher tax brackets as their pensions and salaries increase with inflation. Rachel Reeves, the Chancellor of the Exchequer, confirmed last year that the current bands will remain in place until April 2031, dragging an estimated one million pensioners into paying the tax for the first time. The Office for Budget Responsibility predicts the Treasury will raise £100m from the new payers over the next five years, suggesting an average tax liability of £100. Rachel Reeves, the Chancellor of the Exchequer, has pledged no change to current income tax bands before …

HMRC warning to anyone earning over £50,000 as threshold means ‘not we | UK | News

HMRC warning to anyone earning over £50,000 as threshold means ‘not we | UK | News

Published by Sam Flores

A tax demand letter from HMRC (Image: Getty) A salary of £50,000 once carried a certain image of financial comfort, but insolvency experts say growing numbers of professionals earning £50,000, £60,000 and even £80,000 a year are finding themselves under increasing financial pressure, squeezed by rising household costs, higher mortgage payments and a tax system that is quietly pulling more workers into higher bands. The median full-time salary in the UK is now around £39,000, meaning many of those feeling the squeeze are earning well above average. Molly Monks, insolvency expert at Parker Walsh, said financial stress is increasingly affecting people who would never previously have considered themselves at risk. She said: “One of the biggest misconceptions is that financial difficulties only affect low-income households. We’re increasingly seeing pressure on people with professional careers, mortgages and what would traditionally be considered good salaries. Many are earning more than they were a few years ago, but they don’t necessarily feel any better off.” One of the biggest factors is what’s known as fiscal drag. While wages …

Farage: I will scrap income tax on overtime

Farage: I will scrap income tax on overtime

Published by Sam Flores

Nigel Farage has pledged to axe income tax on overtime as he vows to “make work pay”. If Reform UK wins the next general election, people who earn less than £75,000 and work overtime above a 40-hour week will pay no income tax on the extra hours. The £5bn a year tax cut announcement, made during the crucial Makerfield by-election campaign, will be seen as a direct challenge to Andy Burnham, the Mayor of Greater Manchester. Mr Burnham hopes to oust Sir Keir Starmer if he wins the seat. It appears to be inspired by Donald Trump’s move to scrap tax on tips and is an attempt to make it harder for Labour to define itself as the party of working people. On Saturday, Survation released the constituency voting intention for Makerfield – with Labour leading on 43 per cent, edging Reform on 40 per cent, Restore Britain on 7 per cent, the Lib Dems on 4 per cent, the Green Party on 3 per cent and the Conservatives on 2 per cent. Writing for …

Trump v. Trump | David Cole

Trump v. Trump | David Cole

Published by Jenni Sidey

Call it “the art of the self-deal.” You sue yourself, announce a hasty “settlement” when the judge questions whether you are engaged in collusion (with yourself), and direct the creation of a fund consisting of nearly $1.8 billion to be doled out to your allies by a hand-selected commission—all without judicial or congressional approval. Acting Attorney General Todd Blanche, announcing the creation of President Trump’s “Anti-Weaponization Fund” on Monday, billed it as a way to redress “victims of lawfare and weaponization,” presumably at the hands of the Biden administration—even as Trump pushes the Justice Department to prosecute his personal enemies, such as James Comey and Jerome Powell, on bogus criminal charges. Senator Elizabeth Warren was more accurate, calling the pool of money a political “slush fund” for Trump’s friends. Evidently it wasn’t enough to pardon all those who stormed the US Capitol and brutally assaulted law enforcement officers on January 6, 2021. Now Trump is fixing to use our taxpayer dollars to pay them, too. As if that wasn’t enough, on Tuesday Blanche quietly released …

Treasury responds as support soars for £18,000 income tax threshold change | Personal Finance | Finance

Treasury responds as support soars for £18,000 income tax threshold change | Personal Finance | Finance

Published by Sam Flores

Pressure mounts on chancellor to raise income tax threshold – need to know A campaign demanding Chancellor Rachel Reeves raise the income tax threshold to £18,000 has gained momentum after forcing a Treasury response. The petition has reached 15,764 signatures and could trigger parliamentary debate if it hits 100,000. Millions face extra tax due to the threshold freeze at £12,570 until 2031, with Britain’s most vulnerable workers bearing the brunt. The Treasury firmly rejected the proposal, stating: “The Government currently has no plans to increase the Personal Allowance to £18,000. Increasing the Personal Allowance to £18,000 would come at a significant fiscal cost of over £40 billion per year.” Minimum wage workers will pay an extra £137 annually by 2030 due to the prolonged freeze. The Office for Budget Responsibility estimates the threshold freeze will raise over £55 billion by 2030/31. Earlier petitions calling for a £20,000 threshold attracted 281,792 signatures, becoming one of Parliament’s most-signed campaigns. The Resolution Foundation warns working-age households face a “triple hit” from taxation, utility bills and council tax rises. …

Key personal tax threshold £12,570 update as £18,000 call backing soar | Personal Finance | Finance

Key personal tax threshold £12,570 update as £18,000 call backing soar | Personal Finance | Finance

Published by Sam Flores

Chancellor Rachel Reeves is being urged to raise the lowest tax threshold (Image: Getty) Support is soaring for a new call for Chancellor Rachel Reeves to raise the lowest income tax threshold to £18,000. A new petition on the parliament website has soared in support since it was created – and it is urging Ms Reeves to reverse her decision to freeze the lowest income tax threshold of £12,570 until 2031. In the November budget, Chancellor Rachel Reeves extended the tax thresholds freeze to 2031. For the 2026/27 tax year, the standard UK Personal Allowance remains frozen at £12,570, meaning no income tax is paid on earnings up to this amount. Some of Britain’s most financially vulnerable workers face being taxed the moment their earnings exceed that figure – and because it has remained unchanged, inflation and wage growth mean that considerably more people are now liable for tax than would otherwise have been the case had it risen in line with historical precedent. The petition, which can be viewed here, said: “Raise the personal …

Jobless families on benefits handed £6k boost as tax bomb hits middle class

Jobless families on benefits handed £6k boost as tax bomb hits middle class

Published by Sam Flores

Workless households will be handed a £6,000 annual benefits boost when Labour lifts the two-child cap on Monday, analysis has shown. More than 186,000 families without any working parents will receive thousands in extra benefits as the cap is lifted, after pressure on Sir Keir Starmer from Labour backbenchers. The policy, which will cost an estimated £3.5bn, will be funded by tax increases on middle-class families, including new levies taking effect on Monday, adding hundreds of pounds to household bills and leaving workers worse off. Council tax and utility bills are to rise sharply on Monday, while stealth income taxes introduced by Rachel Reeves, the Chancellor, could see basic rate taxpayers paying up to £700 more to the Treasury. The tax increases will help the Government pay for scrapping the two-child cap, which it says will lift 450,000 children out of poverty. Kemi Badenoch says those on benefits are getting another handout while working people struggle – House of Commons But Kemi Badenoch, the Conservative leader, said it amounted to “another handout to those on …

Rachel Reeves provides urgent state pension tax change update | UK | News

Rachel Reeves provides urgent state pension tax change update | UK | News

Published by Sam Flores

Rachel Reeves has issued an update for pensioners (Image: Getty) Rachel Reeves has issued a fresh update on a looming tax change affecting millions of pensioners as the value of the state pension continues to rise. The Chancellor confirmed the Government is working on plans to ensure pensioners whose only income is the state pension will not be forced to pay income tax, despite increases driven by the triple lock policy. Her comments come after warnings that more pensioners could be pushed into paying tax from April as the state pension rises again. Under the Government’s current policy, the state pension increases each year under the State Pension Triple Lock, which guarantees payments rise by whichever is highest between 2.5%, inflation or average wage growth. READ MORE: ‘Fight back against Rachel Reeves – by building your own inheritance tax pot’ READ MORE: Diesel drivers ‘feeling the heat’ as they’re hit with 17p per mile charges seno (Image: Getty) From April 2026, the full new state pension will increase by 4.8%, rising to £241.30 per week, …

What taxes do you stop paying when you’re a pensioner?

What taxes do you stop paying when you’re a pensioner?

Published by Sam Flores

Pensioners are being warned that they could no longer be exempt from paying tax once the new financial year hits. By April 2026, an extra 600,000 pensioners could be expected to pay income tax after Rachel Reeves pledged to freeze the income tax threshold until at least 2028 in the autumn budget, according to the government’s fiscal watchdog the Office for Budget Responsibility. This freeze will result in an additional one million pensioners paying income tax by 2030-31, the OBR said. While Rachel Reeves has pledged that no pensioners who solely claim the state pension without any other earnings will be forced to pay tax, retirement expert and former pensions minister Steve Webb has said that HMRC has “underestimated” just how many pensioners will be hit by the fiscal drag. Ahead of the new financial year, Yahoo News explains what taxes pensioners are eligible to pay, where they are exempt, and just who will be expected to pay income tax due to the personal allowance freeze. What taxes do pensioners no longer pay once they …