Darling’s NI ‘sting in the tail’ for ordinary taxpayers.
“Jam today – dripping tomorrow”
Carolyn Steppler, Associate Partner at KPMG in the UK, said:
“The much-trailed hit on high earners through the increase in the top rate of tax to 45% at £150k was not the Chancellor’s only tax offensive.
Many more lowly earners will also end up paying more tax. Whilst the increase in the personal allowance and NI lower earning contributions will save somebody earning £30,000 a year approx £118 now, this will be wiped out by the 0.5% NIC increases from April 2011.
“This is a classic case of jam today, dripping tomorrow.
Many people will feel mildly better off through the reduction in VAT (though even there, if you drink, drive or smoke it will be clawed back), but it will be payback time in April 2011.
Subscribe to this comment's feed
