The new tax year in April will see the doubling of the tax rate paid by the lowest earners in the UK. Anyone with an income of between £5,500 and £8,000 will pay tax at 20% rather than 10% on that taxable income. Another genius decision by Gordon Brown but I am sure the BBC would spin it away...
I remember reading at the time that the new tax rates will actually have a negative effect on anyone earning less that 19,000.
ReplyDeleteI'm not certain how the tax credits system will deal with this and cannot find any info. I will guess that everyone who gets those tax credits will have exactly the same amount of money - but they will be that little bit more reliant on the state for their income and they'll be easily sold a labour rosette come polling day.