Thousands paying ‘super tax’
THE Institute of Fiscal Studies (IFS) has revealed that many professionals are paying an income tax rate of 60 per cent.
The policy which was introduced by the last Labour government is thought to affect approximately 500,000 people earning between £100,000 and £120,000 resulting in them paying 60p of every pound they earn in tax.
The 60p rate kicks in because those earning that band of income lose their tax-free personal allowance, resulting in higher rates of tax being applied to that portion of money.
Simon Howard, consultant at Ludlow Wealth Management, which operates in Blackburn, said: “The IFS’s findings indicate that thousands of people are being taxed at a ‘super’ rate – potentially without them knowing.”
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