UK’s Boris Johnson is breaking his own election manifesto promises by hiking UK tax rises
ECONOMICS | FINANCE | TAX | UK
Next week will see UK Prime Minister Boris Johnson announce that he is breaking his own election manifesto promises by hiking taxes.
The UK has been hit by a double financial crash caused by the COVID19 pandemic and Brexit.
The new tax is deducted form income at source in the form of increased National Insurance (payable by everyone employed and the person who employs them, so bad news for those who own the small businesses that their pay comes from as their rise will be two fold).
National Insurance is the tax UK citizens have to pay for compulsory contributions to medical insurance entitling them to use the National Health Service. You can not opt out of paying National Insurance even if you have your own private medical insurance. Your employer also has to pay your National Insurance on top of your own payments known as Employer Contributions, your employer also has to do this for your pension payments.
The tax is due to rise by around 1.25% meaning if you earn £60k per year you will now have to pay £5’709 per year as your minimum National Insurance payment. Your employer will also have to pay an additional £8’280 per year for your current employer national insurance contributions (13.8%) rising to an expected £9’030 per year. Making it more expensive for companies to employ staff in an economy that already heavily favours low staff numbers.
Additionally the average UK worker will also pay income tax upto 45%, student loan repayments at 6% and pension contributions (typically 5%) self employed and those who own their own companies have to pay significantly more. Employers have to pay contributions for pensions and National Insurance for each worker they hire.
The UK has a very high rate of tax evasion.
© 2021 Al-Sahawat Times, Printed and Distributed by IPMG, an Al-Said Group entity.
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