Below is a list of methods Britons might be paying more tax this year, made up by monetary services business Hargreaves Lansdown.
1 More tax on pay: The individual allowance has actually been frozen at ₤ 12,570, and the greater rate limit has actually been stuck at ₤ 50,270 because April 2021. With earnings up 6.1% in a year, the frozen limits indicate we’ll pay more tax– and more people will pay a greater rate.
2. … Specifically those on greater earnings: The ₤ 100,000 level at which the individual allowance begins to be withdrawn has actually stayed frozen, and from April the extra rate limit will fall from ₤ 150,000 to ₤ 125,140.
3. More tax on earnings: Company owner might pay more tax after the dividend tax allowance is cut in half from ₤ 2,000 to ₤ 1,000 in April.
4. More tax on financial investments: Financiers might pay more tax, as the dividend tax limit is cut, and the capital gains tax limit falls from ₤ 12,300 to ₤ 6,000 in April.
5. More council tax: expenses will rise to 5% in April, so band D council tax might increase from approximately ₤ 1,966 to as much as ₤ 2,064.
6. More tax on costs: Inflation might indicate paying more barrel.
7. More tax on home: Residential or commercial property financiers might pay more tax thanks to the slashing of the capital gains tax allowance.
8. More estate tax: Greater house costs– up ₤ 33,000 in a year – and frozen estate tax limits might indicate more IHT.
