'This is just the start...' Rishi Sunak may hit retirees further in next Budget

Boris Johnson launched major tax reform in early September, as taxpayers were forced to pay more towards a Health and Social Care Levy. This levy is designed to cover rising NHS and social care costs and while the Government assured it was spreading “the pain” evenly, some Britons may end up paying more than others. Despite the broad range of changes introduced, many fear the amounts raised will not come close to covering the costs of coronavirus and as such, Rishi Sunak will be forced to take more from taxpayers.

Maike Currie, an investment director at Fidelity International, examined the changes when they were announced and warned more may be on the horizon.

“The one-off suspension to the triple lock for the state pension has been offered as a way to reset the balance between generations while addressing the data anomaly of an 8.8 percent increase in average earnings,” she said.

“By only suspending the triple lock for one year, the Government has avoided scrapping the manifesto promise completely, instead relying on a double lock of inflation or 2.5 percent – whichever is higher. The breaking of the triple lock was almost inevitable, once it was made clear that National Insurance contributions are to increase by 1.25 percent for both employees and employers. By also applying the levy to working adults above state pension age, the Government argues it is spreading the pain of paying for the pandemic between individuals and businesses, as well as across generations.

“The announcement of a 1.25 percent increase in taxation of dividends is clearly aimed at allaying criticism that the new policy unfairly puts pressure on the working population to provide support for those already in retirement, with no impact on the very wealthy.

“The Government also stated that most everyday investors will be unaffected. Shares held in ISAs are not subject to dividend tax and, due to the £2,000 tax-free dividend allowance and the personal allowance, around 60 percent of individuals with dividend income outside of ISAs are not expected to pay any dividend tax or be affected by this change in 2022-23.

“”This is just the start of the UK Government tightening its belt as it gears up to pay for the cost of the COVID-19 pandemic, and nothing – not even manifesto promises – are off limits.”

READ MORE: Rishi Sunak’s tax changes to force ‘shorter timeframes’ for taxpayers

© GETTY/PA IMAGES Rishi Sunak

Fidelity International also surveyed a nationally representative sample of 2,000 UK adults, with the results showing 57 percent of people do not support the state removing the triple lock, rising to 76 percent for those aged 55 or over.

Unfortunately, taxpayers may need to get ready for further costly changes in the weeks ahead as Rishi Sunak evaluates his options.

Ms Currie continued: “The breadth of the announcement made by the Government this week shows that nothing is off the table when it comes to paying for the pandemic. We now know that the Treasury has also launched a spending review which will conclude alongside the Budget announcement in just over a month’s time.

“Levelling Up, Global Britain, climate change, domestic infrastructure, and innovation are spending priorities according to the Government, and we can expect to hear more about them in October. However, there are also rumours other forms of taxation could also be reviewed, such as capital gains tax, inheritance tax or the pensions lifetime allowance.

“It is difficult to predict what will happen when it comes to politics, but given the response to changes made to national insurance contributions, dividends tax and the triple lock this week, further tax reforms on wealth could still be announced to appease critics.”

DON’T MISS:

Britons urged to check their tax codes ahead of NI social care levy [EXPERT]

Link

‘Death of retirement’ warning: Working past 65 to become a necessity [WARNING]

Link

‘Theft from pensioners!’ – Retirees vow to vote against Tories [INSIGHT]

Caroline Walker, a Tax partner at North East accountants/business advisers, noted pension rules and certain reliefs specifically could be targeted.

“You can never say never but the view is that there are unlikely to be headline tax rises as whilst CGT and pensions tax reliefs are under scrutiny, they’ve just introduced a new ‘tax’ from April 2022 – whilst this supposedly pays for social care etc it still leaves the funding of the black hole to be resolved,” she said.

“However, introducing further tax rate changes could really annoy the voter. Perhaps they may introduce other tax rises indirectly/stealthily by tweaking certain rules.”

Specifically, Ms Walker detailed this could include:

  • Abolishing indexation allowance claimed by companies on the sale of assets.
  • Increasing the qualifying period of ownership for BAD relief (ex entrepreneurs relief).
  • Reducing the threshold for the reduction of the personal allowance from £100,000 to say £80,000.
  • Reducing the maximum pensions savings allowance from £40,000.

© EXPRESS Social care

While the Chancellor has not confirmed what the Autumn Budget will be included ahead of time, HM Treasury detailed the Government’s broad goals. The upcoming three-year review will set UK government departments’ resource and capital budgetsfor 2022-23 to 2024-25 and the devolved administrations’ block grants for the same period.

HM Treasury explained that when everything is added to what it’s already provided to “invest in our future”, core departmental spending will grow in real terms at nearly four percent and by 2025, spending will be £140billion more per year in cash terms than at the start of the Parliament. This will likely place pressures on the Government’s coffers.

At the Spending review, the Government will “set out how we will Build Back Better, deliver the priorities of the British people and continue to support businesses and jobs” and they said this will be done through:

  • Ensuring strong and innovative public services – making people’s lives better across the country by investing in the NHS, education, the criminal justice system and housing;
  • Levelling up across the UK to increase and spread opportunity; unleash the potential of places by improving outcomes UK-wide where they lag and working closely with local leaders; and strengthen the private sector where it is weak;
  • Leading the transition to Net Zero across the country and more globally;
  • Advancing Global Britain and seizing the opportunities of EU exit;
  • Delivering our Plan for Growth – delivering on our ambitious plans for an infrastructure and innovation revolution and cementing the UK as a scientific superpower, working in close partnership with the private sector.

As HM Treasury confirmed these plans, Mr Sunak commented: “Since the start of the pandemic, we’ve delivered on an unprecedented scale to protect people’s jobs and livelihoods.

“Despite the worst economic recession in 300 years, we have not only got people back into work through the Plan for Jobs but continued to deliver on the priorities of the British people.

“At the Spending Review later this year, I will set out how we will continue to invest in public services and drive growth while keeping the public finances on a sustainable path.”

Full details on HM Treasury’s Autumn Budget plans can be found on the Government’s website. Additionally, impartial guidance on the state’s current coronavirus support measures, such as the furlough and SEISS scheme, can be sought from the likes of Citizens Advice and Money Helper.

Internet Explorer Channel Network
News Related

OTHER NEWS

The Best Fall Fashion Splurges, According to Amazon

When Amazon talks, the world listens. And why wouldn’t it? The retailer has got its finger on the pulse of what virtually every household in the country is buying. We ... Read more »

No more super skyscrapers, says China

China has restricted smaller cities in the country from building “super high-rise buildings”, as part of a larger bid to crackdown on vanity projects. © Getty Images China is home ... Read more »

How to change car setups in NASCAR 21: Ignition

© Provided by GamePur If you’re struggling to gain traction in NASCAR 21: Ignition, perhaps you need to change the car setup. Car setups affect how your car will act ... Read more »

Markets await ECB stimulus clues amid rising inflation

© INA FASSBENDER Inflation is likely to dominate discussion at the ECB’s monetary policy meeting on Thursday Rising inflation across the eurozone will take centre stage as European Central Bank ... Read more »

Will More Star Trek Veterans Join Prodigy After Kate Mulgrew? Here's What The Showrunners Said

© Provided by CinemaBlend Hologram Janeway looking at the crew of the Protostar Star Trek: Prodigy is the latest series in the Star Trek franchise to premiere on Paramount+, and ... Read more »

Video: Chicago Mayor Lori Lightfoot is 'drowned out by boos' at plumbers union event before she abandons stage 'less than a minute' into speech over her unpopular vaccine mandate

Read more »

G20 leaders to meet in the shadow of Mussolini's palaces

© Andreas SOLARO Carabinieri police officers stand guard outside the ‘Nuvola’ convention centre ahead of the G20 summit G20 leaders will meet this weekend in Rome’s historic surroundings of EUR, ... Read more »

[VIDEO] Tular video kenderaan tekan minyak rempuh gerai, rupanya pemandu pitam kerana tak makan

*Amaran: Video di dalam artikel ini mungkin menganggu perasaan pembaca. PEDAL minyak tertekan menyebabkan asap berkepul-kepul, demikian paparan video nahas kenderaan pacuan empat roda merempuh sebuah gerai yang tular baru-baru ... Read more »

JFK to California flight diverted to Denver after attack on flight attendant

An American Airlines flight was diverted to Denver after a passenger attacked a flight attendant. EPA A flight from New York City to southern California made an emergency landing after ... Read more »

Astros rip Braves to even World Series at a game apiece

HOUSTON — Dusty Baker knows his team. After dropping Game 1 of the World Series to Atlanta on Tuesday at Minute Maid Park, the Houston manager said he had no ... Read more »

Katharine, 37, hints at svelte midriff out to with David, 71

© Provided by Daily Mail MailOnline logo Katharine McPhee, 37, was spotted looking summery stylish while out this autumn with her husband David Foster. The actress and singer was modeling ... Read more »

India voices concern over US' forced labour proposal amid subsidy talks

India has raised concerns at the US’ proposal at the World Trade Organization (WTO) that mandates countries to submit information on any fishing vessel and operator that makes use of ... Read more »

Fancy number plates not a business expense, says Income Tax Appellate Tribunal

Exclusive number plates for CXOs cannot be classified as a business expense, the Income Tax Appellate Tribunal (ITAT) has said. Tax experts say the verdict could set a precedent for ... Read more »

Roadmap quirk allows unvaccinated Victorians to visit stores from Friday – but only for three weeks

Photograph: Daniel Pockett/Getty Images Unvaccinated shoppers in Victoria will be able to visit retail precincts when the sector reopens on Friday due to a quirk in the government’s timeline that ... Read more »

Taiwan leader has 'faith' US will defend island against a Chinese attack

Taiwanese President Tsai Ing-wen speaks during the Taiwan National Day celebrations in Taipei, Taiwan, 10 October 2021. – Epa-Efe/Shutterstock Taiwan's president says she has “faith” the United States would defend ... Read more »

EXCLUSIVE | Was Unnao BJP Leader on Underworld's Radar? Ahead of UP Polls, Pak 'Targets' Saffron Party

© Provided by News18 EXCLUSIVE | Was Unnao BJP Leader on Underworld’s Radar? Ahead of UP Polls, Pak ‘Targets’ Saffron Party The arrest of two underworld killers by Uttar Pradesh ... Read more »

Toy manufacturers to see higher GST liability following AAR ruling

Toys manufacturers are set to see higher tax liabilities after a ruling said that toys that have any form of light or sound should be treated as electronic toys and ... Read more »

Australia rules out committing to methane reduction target

Australia‘s Prime Minister Scott Morrison holds a government document outlining emissions reductions at the parliament house in Canberra, Wednesday, Oct. 27, 2021. Australia‘s opposition party said a looming election will ... Read more »

Taiwan's president confirms dozens of US troops ARE on the island and training Taiwanese military as she warns threat from China is increasing every day

Taiwan's President Tsai Ing-wen said she has 'faith' that the United States will defend the island in the event China launches a military strikeDuring an interview broadcast on CNN the president also revealed that American troops are on Taiwanese soil training Taiwan's military There are 32 members of the US military currently in Taiwan She said she hopes that China and Taiwan can 'co-exist peacefully' despite the current knife-edge atmosphereRemarks come as tensions soar in East Asia, where incursions by Chinese warplanes into Taiwan's air defense zone have spiked in recent weeks  Self-governed Taiwan's 23 million people live under constant threat of invasion by authoritarian ChinaChina views the island as its territory and has vowed to one day seize it, by force  Despite the persistent threats and aggression from Beijing, Tsai said she is willingly to meet with China's President Xi in order to 'reduce misunderstanding' President Biden told a televised forum last week that Washington was ready to defend Taiwan from any Chinese invasionRemarks were swiftly walked back by the White House, which wants to maintain a strategy of ambiguity on whether it would intervene militarily if China attacked Read more »

FII: Saudi Arabia's tourism fund and London hospitality company Ennismore form $400m fund

© Reem Mohammed/The National Al Hijr, also known as Medain Saleh, is a popular tourist spot in Saudi Arabia. Tourism is expected to account for more than 10 per cent of ... Read more »

BTS' DOPE, ON, Dionysus and more: ARMY, which is the toughest choreography of the septet? Vote now

© Provided by BollywoodLife.com Bangtan Boys aka BTS work very hard. In fact, extremely hard as they dance and sing at the same time on stage. And their dance choreographies ... Read more »

Unexcited by low EV volumes: Maruti

© Provided by The Times of India NEW DELHI: At a time when Tata Motors has recorded electric vehicle sales of over 1,000 units a month, Maruti chairman R C ... Read more »

Esha Gupta reveals she was abused by a director, says she walked off the set and 'Told Him Same Thing Back'

© Provided by Zee News New Delhi: Actress Esha Gupta, who has been in the movie business since 2012, revealed that she was twice abused by a director on a ... Read more »

Insurer Acko 34th Indian unicorn in '21

© Provided by The Times of India MUMBAI: New age insurer Acko has become the 34th unicorn (valued at over $1 billion) this year following the close of its series-D ... Read more »

India Post Recruitment 2021: Apply for over 220 vacancies at indiapost.gov.in, check details here

© Provided by Zee News New Delhi: The Department of Posts has invited applications for the various vacancies in India Post, Delhi circle. The office of the Cheif Postmaster General, ... Read more »

Tornado destroys homes in weather-battered western Louisiana

LAKE CHARLES, La. (AP) — A tornado touched down in western Louisiana Wednesday, damaging more than a dozen homes in a part of the state still struggling to recover from ... Read more »

Oxford University says Marcos Jr. did not complete degree

© Provided by BusinessWorld The University of Oxford has waded into a row waged on social media over the education credentials of Philippines presidential candidate Ferdinand Marcos Jr., saying he ... Read more »

Chicago Mayor Lori Lightfoot is booed off stage at plumbers union fundraiser over her controversial vaccine mandate

Mayor Lori Lightfoot was 'booed off the stage' at a fundraiser for the plumbers union, attendee claimedVideo captured the moment Lightfoot was introduced and met with loud boosThe plumbers union was the first union to endorse Lightfoot in 2019Union President Jim Majerowicz was not in the room but said he found it 'hard to believe' that the union members are against LightfootCity workers are upset with Lightfoot for implementing a vaccine mandate  Read more »

The Attorney movie review: Hong Kong legal drama championing city's rule of law is an engaging thriller that may well be the last of its kind

Alex Fong in a still from The Attorney (Category IIB, Cantonese), directed by Wong Kwok-fai. Carlos Chan co-stars. 3.5/5 stars It says much about Hong Kong’s rapidly shifting political landscape ... Read more »

Significantly increase financial support for Afghan education, says Unicef agency

© IANS Significantly increase financial support for Afghan education, says Unicef agency Kabul, Oct 28 (IANS) Education Cannot Wait (ECW), which sent the first all-women mission to Afghanistan since the ... Read more »

Drugs case: Mumbai Police forms 4-member probe team

© Provided by Hindustan Times Narcotics Control Bureau (NCB) Mumbai zonal director Sameer Wankhede arrives at the NCB office in New Delhi earlier this week.  (ANI ) The Mumbai Police ... Read more »

Modi to address COP26 next week, launch international solar grid with UK PM

© Provided by The Times of India NEW DELHI: Prime Minister Narendra Modi will address the leaders’ summit at UN climate change conference (COP26) in Glasgow on Monday and along ... Read more »

EXCLUSIVE | Was Unnao BJP Leader on Underworld's Radar? Ahead of UP Polls, Pakistan 'Targets' Saffron Party

© Provided by News18 EXCLUSIVE | Was Unnao BJP Leader on Underworld’s Radar? Ahead of UP Polls, Pakistan ‘Targets’ Saffron Party The arrest of two underworld killers by Uttar Pradesh ... Read more »

Paul Pogba and Man Utd may finally have reached point of no return as contract runs down

Manchester United midfielder Paul Pogba is well into the final year of his Red Devils contract, one that should not be renewed if United are to take the first step ... Read more »

'Fortress New Zealand' outlines plans to reopen border

New Zealand on Thursday unveiled plans to tentatively reopen its borders amid growing pressure from Kiwis stranded overseas by some of the world’s toughest pandemic travel restrictions. © Sanka VIDANAGAMA ... Read more »

Rep. Marjorie Taylor Greene said the Capitol attack was 'just a riot' and fits what the Declaration of Independence says

© Jacquelyn Martin/AP Georgia Rep. Marjorie Taylor Greene. Jacquelyn Martin/AP Rep. Marjorie Taylor Greene called the Capitol attack “just a riot” and implied those present were “innocent.” She also drew ... Read more »

Facebook 'KNEW that women were being trafficked from Asia for sex work in US massage parlors' but insiders close to criminal investigation have no memory of tech giant assisting with law enforcement

 David Williams, plead guilty in November 2019 to trafficking women from Asia to the United States for sex work in Pennsylvania, Florida and VirginiaFacebook confirmed it was aware of the trafficking ring in a 2019 internal report where they boasted how it had 'disrupted' the criminal network Yet, court documents made no note of any Facebook investigation or evidence the tech firm provided to the FBI or authorities People closely involved with the criminal investigation also said they had no memory of Facebook involvement or findings in the case Facebook insist they did assist police, but spokesman Andy Stone has not provided any details of the information given In 2018 a new law was enacted to make tech companies civilly and criminally liable if they do not act to stop sex trafficking on their platformsThe latest revelations are part of an intense focus on Mark Zuckerberg's firm, thanks to whistleblower Frances HaugenEarlier on Wednesday it emerged that Facebook did little to prevent Donald Trump whipping up partisan fury after riots following George Floyd's death  Read more »

Kyrsten Sinema skips Congressional Women's Softball Game

WASHINGTON, D.C. — Sen. Kyrsten Sinema isn’t playing ball. © Provided by Washington Examiner The centrist Democrat from Arizona, in the spotlight during high-stake spending talks, skipped the Congressional Women’s ... Read more »

Video: Karlie Kloss twirls around a post as she glimmers in sequined Prada gown and Manolo Blahnik boots out in NYC

Read more »

Soccer-United's Rashford 'embarrassed' by Liverpool thrashing

(Reuters) – Manchester United forward Marcus Rashford said he stayed away from social media over the last few days as he was embarrassed by Sunday’s 5-0 loss to Liverpool but ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic