TaxPersonal TaxMillions still lose from 10p moves

Millions still lose from 10p moves

Six million people will still be worse off, the IFS says

The Institute for Fiscal Studies has said that six million people will still
be worse off as a result of the abolition of the 10p rate if income tax.

Despite the government raising the threshold at which income tax is paid, a
detailed analysis by the IFS calculates that the six million people who will
still pay more tax this year will include those under 65 on incomes of between
£6,535 and £13,355 a year,
the
Independent reported
.

The biggest losers will be people earning £7,755 a year, who will be £112
worse off.

18 million families will be an average of £150 a year worse off over the next
two years unless the Government extends the one-off £160 tax cut, which will
soften the blow from ending the 10p rate this year.

Further Reading:

Read
the Independent’s article

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