Lowering higher-rate tax band to 45p will increase yield, say readers
The drop in the higher-rate tax band to 45p will increase revenues, an Accountancy Age poll finds
LOWERING the higher-rate tax band to 45p will increase the yield, according to Accountancy Age readers.
The notion the people are more willing to pay up if their effective rate is below 50% took 57% of the 106 votes cast. The remaining 43% agreed lowering the rate will only mean more money in the pockets of higher-rate taxpayers.
The start of the new tax year on April 6 saw the higher rate make the drop from 50p to 45p, along with a rise the personal allowance to £9,440 with the promise it will rise further to £10,000 next year.
In his March Budget, chancellor George Osborne also reduced corporation tax by a percentage point to 20%, claiming such moves were made to reward those who “want to work hard and get on”.
Take part in the latest Accountancy Age poll:
Did Thatcher’s economic reforms leave a positive legacy for UK businesses?