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Tax Increases and Other Bad News Spell Trouble for Middle Income Earners

Most of us have now heard about the Spending Review taken on by the coalition government. Cuts are being put in place to reduce the outgoings so that we can start chipping away at the huge deficit left by the last government.

I was fully prepared to hear cries of dissent from many quarters, but it would appear as if those on a middle income will be hit the hardest by the various measures being put in place.

Recent calculations have estimated that around £10,000 will be lost by each household on a middle income over a four year period. A middle income is largely defined as one that is around £49,000 or more in size for the entire household.

Clearly there are big losses to be coped with here. The losses have been calculated to include the impact of additional taxes, the loss of services and other items as well. But the overall result is the same.

I was expecting the results to be sobering, but £10,000 seems to be a large figure to cope with, even over a four year period. Many people are disappointed, worried and upset about the changes taking place, although many recognise that savings must be made if we are to get out of the national debt we are in.

No doubt many will be seeking to find ways to save money if possible, and also to gather more information on their situation. However tax increases cannot be sidestepped so we must bear the brunt as best we can.

If you have any concerns about your tax situation, contact us at St Matthew now.



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