Many low income families will get little benefit from the increase in minimum wage – Tax and Family experts say.
Read MoreJonna Noble, money editor at the Times and Sunday Times in an article ahead of the Budget has called on Rachael Reeves to create a family friendly tax system.
Read MoreIn his Rose Garden speech on 28 August 2024 Keir Starmer said that those with the broadest shoulders should bear the heaviest burdens. This is not what happens as far as income tax is concerned. Has Keir Starmer been told this?
Read MoreTax and the Family say the cut in national insurance makes little difference to families with low or modest income.
Read MoreTax and the Family has updated its analysis of the tax system to take account of the Spring Budget and changes to benefits. The analysis takes account of the latest income data. It is still the case income tax liabilities are unrelated to household income with the result some families in poverty are paying tax. Treasury figures show that a family with an average household income may pay the same tax as a single adult in top 10%.
Read MoreFrom 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.
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