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Wednesday
Jul212010

Could Income Tax be About to Rise under the New Tory Chancellor?

We all know that Income Tax is a big issue whenever an election rolls round, but this time it has taken on a new meaning altogether.  I have been watching with interest to see how the new Chancellor, George Osborne, handles the issue of taxation given the huge deficit the new government has to get to grips with.

I think any rise in taxes will be unwelcome, but I also believe most of the electorate knows that something has to be done to tackle the deficit.  There will be hard decisions and hard choices to make in the coming weeks and months, no matter what they may turn out to be.

But will a rise in Income Tax be on the cards when the Chancellor makes his emergency Budget speech in the very near future?

While I cannot know the answer at this stage, I’m not convinced he will put taxes up.  It would make them very unpopular and while a 1p increase would raise several billion pounds a year, I think they will find other ways to try and find some cash.

Taxes are still the biggest source of revenue for the government though, so no one can be exactly clear on what could happen at the Budget.  I do feel that other measures will be used though, unless I am very much on the wrong wavelength.  It will be interesting to see how he plans to raise case and where there will be benefits to look forward to, such as the rise in the personal allowance that has been mooted.

If you need any help regarding your own taxes at the moment, or about any aspect of your business, call St Matthew now.

 



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