High earning estate agents may soon find themselves paying more income tax as the government attempts to fill a near £60bn fiscal black hole.
Rishi Sunak is considering expanding the top rate of income tax next week after the Treasury warned that more money was needed to protect pensions and benefits, the Telegraph has reported.
Raising the 45% top rate or lowering the £150,000 annual income threshold at which it kicks in are reportedly options now being discussed.
Such a move would be a dramatic reversal of the situation from September, when the now former PM Liz Truss scrapped the 45% rate, before reinstating it later when financial turmoil in the markets forced her to tone down her plans.
The Treasury is also looking at increasing the National Insurance rate paid by employers by 1.25%, the newspaper said.
Raising the rate of income tax or national insurance will undoubtedly prove unpopular, in part because it would break an explicit pledge made in the Tory 2019 general election manifesto.
The government is attempting to plug the financial deficit with a combination of spending cuts and tax hikes.
The chancellor, Jeremy Hunt, will unveil his autumn statement on 17 November.
Even Labour worked out that you can’t grow an economy by taxing it to death. These guys are suspending logic and experience from every consideration.
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High earning agents?
Not many of them about 35k is the average salary
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Isn’t a ‘£ 60bn fiscal black hole’ about the same size economically as the fiscal black hole that is HS2 ?
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Who are these high earning estate agents? I think we should be told. (Typed with tongue firmly in cheek)
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If they tinker with the dividends then I think I saw somewhere that a director paying themselves £40,000 in dividends would pay more in tax than an employee on the same amount!
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