IFS slams failure to uprate tax thresholds
As the new tax year dawns, having thresholds in the tax system which do not rise with prices means increasing numbers of people are being drawn into higher tax bands in a way which is neither planned nor transparent, the Institute for Fiscal Studies (IFS) is claiming.
Its analysis shows that the year before the new top income tax threshold of £150,000 was announced, there were 319,000 taxpayers with incomes above that level. The threshold has not moved since it was introduced in 2008 and there are now 428,000 individuals with incomes above that level, an increase of more than one-third.
Read more at Accountancy Daily.