About Income Tax
An income tax is a tax imposed on individuals or entities that varies with respective income or profits. Income tax generally is computed as the product of a tax rate times taxable income. Taxation rates may vary by type or characteristics of the taxpayer. The tax rate may increase as taxable income increases.
Government spending plans 'a very big risk', says watchdog
... While Mr Hunt announced the cut to NI rates, he opted to leave NI and Income Tax thresholds untouched, meaning they remain frozen until 2028...
Autumn Statement: Hunt chose NI cuts over 'crowd-pleasing' tax cuts
...Chancellor Jeremy Hunt has said he rejected making " crowd-pleasing" tax cuts like Income Tax and inheritance tax in his Autumn Statement, in favour of cuts to help grow the economy...
Chris Mason: Three things really matter in Autumn Statement
... " By 2028-29, frozen thresholds result in nearly four million additional workers paying Income Tax, three million more moved to a higher rate and 400,000 more paying the additional rate, " says the OBR...
The hidden tax rise in the Autumn Statement
... While Jeremy Hunt announced a cut in National Insurance (NI) rates, he opted to leave NI and Income Tax thresholds untouched, meaning they remain frozen until 2028...
What the Autumn Statement means for you and your money
... NI works in a similar way to Income Tax, deducting a fixed percentage of the money you earn from your wages...
How much money does the UK government raise and spend each year?
... Where does the government s money come from? About a quarter of the money the government expects to raise this year will come from Income Tax, which people pay on the money they earn...
Hunt does not rule out tax cuts in Autumn Statement
... Chancellor Jeremy Hunt has not ruled out cutting Income Tax in Wednesday s Autumn Statement, as he insisted economic growth was his priority...
Laura Kuenssberg: Reshuffle deals drama but voters more worried about wallets
... There s also the potential political contradiction of while taking much more from millions in Income Tax...
Government spending plans 'a very big risk', says watchdog
By Vishala Sri-PathmaBusiness reporter
Spending plans outlined in the chancellor's Autumn Statement represent " a very big fiscal risk" according to the UK's official economic forecaster.
Richard Hughes , chair of The Office for Budget Responsibility, told MPs on the Treasury Select Committee that spending plans carried A Level of " uncertainty".
He explained that much of the spending promised is funded by projected savings rather than income already received.
Last week, the OBR slashed its forecast for UK Economic Growth .
In March, the OBR said it expected Gdp - a measure of the size and health of a country's Economy - to grow by 1. 8% in 2024 and 2. 5% in 2025.
Those predictions have now been cut, with a new forecast suggesting the UK Economy will grow by 0. 7% in 2024 and 1. 4% in 2025.
Presenting his Autumn Statement last week, Chancellor Jeremy Hunt announced tax cuts, tighter welfare rules, and further measures aimed at Getting More people into work.
" It is very difficult to assess the credibility of the government's spending plans, because after March of 2025 the government doesn't have any spending plans, " Mr Hughes said, as he and other members of the OBR faced questions on the Autumn Statement.
The chancellor's speech, delivered to The Commons , is the government's main opportunity outside of the Budget to make tax and spending announcements.
Bigger-than-expected cuts to National Insurance (NI) and frozen tax brackets were raised in Tuesday's hearing in parliament.
The main rate will go down from 12% to 10% from January - although previous tax changes mean many workers will not be much better off.
However, members of the OBR told The Committee that the impact on Economic Growth from this measure was " unambiguously" positive.
While Mr Hunt announced The Cut to NI rates, he opted to leave NI and Income Tax thresholds untouched, meaning they remain frozen until 2028.
It means that as workers secure pay rises, they may end up paying more tax if they are dragged into a higher tax band than before.
Some 2. 2 million more workers now pay the basic rate Income Tax of 20% compared with three years ago, according to official figures, while 1. 6 million more people have found themselves in the 40% tax bracket in the same period.
Prof David Miles , a member of the Budget Responsibility committee, told MPs it wasn't clear how this measure would impact growth.
" It would mean that living standards would be lower and so may mean that workers would have to do additional hours, " said Prof Miles.
Related TopicsSource of news: bbc.com
