Other storiesSly departure of NI ceiling
The research also revealed that as many people do not expect their employers to offer a pay rise to cover the rise in tax.
In last year’s Budget, Gordon Brown announced an additional contribution of1% of earnings from next month.
Andrew Smith, chief economist at KPMG, comments: ‘A 1% hit may not sound like huge amount to people but it is likely to contribute to a significant slowdown in consumption growth this year.
‘The fact that the majority of the population is unaware of the effect of the change suggests that many have yet to adjust their behaviour. The choice consumers will inevitably face is between borrowing to compensate – which might not prove so attractive as the housing market slows – or having to curtail their spending plans.’
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC