From 1 April the National Living Wage, the legal minimum for workers aged 21 years and over, increased by £1.02 from £10.42 to £11.44 – a 9.8% increase.
Read MoreIn a letter published in The Guardian newspaper, Don Draper of Tax and the Family explains why even families with high earnings are struggling.
Read MoreA poll of over 2000 adults for the Family Hub Network suggests that voters would strongly support a more family friendly tax system. 70% say that income should be taxed on the basis of household income, not, as now, on individual income. There was strong support for family tax cuts in the forthcoming Budget, particularly among people with dependent children.
Read MoreAn important new IFS report explains and examines the thresholds built into the income tax system, such as the Personal Allowance and the rate bands and the tapering of the allowance on incomes over £100,000. It highlights the problems present for these taxpayers. Exceeding a threshold may make a taxpayer materially worse off – thresholds create economic barriers.
Read MoreMany people probably don’t realise how high their marginal rate of tax is and therefore how little they gain from an increase in income. Many politicians don’t seem to know. Do you know? Leonard Beighton has explained how income tax, national insurance and benefit systems overlap and as a result many of the least well off households have in effect a 68% tax rate. For some their tax rate will be higher.
Read MoreFamilies will welcome the cut in the national insurance contribution (NIC) rate from 12% to 10 % from 6 January 2024: with income tax at 20% that will mean a combined rate of 30%. However for the substantial number of families who both pay tax and nic but are entitled to universal credit, the tax saving will be much smaller than the Chancellor said.
Read MoreThe tax burden is increasing for everyone but taxpayers with children are the worst affected. They have the lowest incomes yet bear a disproportionately high share of the income tax burden. The Treasury takes back from many of them almost 70% or more of any extra money they earn, a review of the taxation of families by Tax and the Family says.
Read MoreThe Office of National Statistics announced yesterday that in August the Consumer Prices Index rose by 6.7%. This means that prices have risen by 6.7% compared to the same month a year ago. Wages are said to have increased by 7.8%.
Read MoreDon Draper of Tax and the Family has said the report shows what a mess the tax and and benefit system is. It should be compulsory reading for all politicians and their advisers.
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