National Insurance cuts announced by the Chancellor will be ...
In this week's edition of In the Sheets:
More than 600,000 workers are missing out on income tax rebates due to HMRC's outdated system.
National Insurance cuts announced by the Chancellor will be "wiped out" by the continuing impact of frozen tax thresholds, analysts have said.
The UK will have paid nearly ￡24bn in post-Brexit payments to Brussels by April next year, according to the Office for Budget Responsibility (OBR).
Tax News
NI cuts to be wiped out by frozen tax thresholds
National Insurance cuts announced by the Chancellor will be "wiped out" by the continuing impact of frozen tax thresholds, analysts have said. Low earners are due to pay up to ￡401 more tax in the next financial year compared to if tax thresholds kept pace with inflation, according to the report. Calculations by investing platform Interactive Investor have found that average earners are due to pay ￡124 more tax next year, despite the ￡486 saving made from NI cuts. Meanwhile, high earners - those on salaries of ￡50,000 or more - can expect to still pay ￡381 extra tax next year due to frozen thresholds. Alice Guy, head of pensions and savings at Interactive Investor, said: “Fiscal drag is a ruthless and silently effective tax policy and leads to us all feeling a lot poorer over time.” Myron Jobson, senior personal finance analyst at Interactive Investor, said cutting NI while tax thresholds are frozen "amounts to giving with one hand and taking away with the other." He added: "Unfortunately for workers, the pendulum will increasingly swing against them over time as wages grow while tax thresholds remain unchanged."
Investment
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￡4.5bn boost for British manufacturing
The government has announced plans for a ￡4.5bn funding package for key manufacturing sectors, with ministers looking to drive growth and boost investment in the UK. In a foreword to the plan, Business Secretary Kemi Badenoch said that while other countries “have embarked on large tax and spending sprees to claim a share of the global manufacturing market,” the UK “will not be drawn into a distortive subsidy battle.” Prime Minister Rishi Sunak said the plan “will not only give the industry the long-term certainty they need to grow and invest further in the UK, but it will also lay the foundations to create more jobs and opportunities.”
Brainteaser ?? ...
I often have many branches, but I do not have leaves, a trunk, or fruit.
What am I?
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