Families face forking out £4k in income tax – will you be affected?
FAMILIES face paying an extra £4,000 in income tax as a result of plans to cut government borrowing.
The rise would be equivalent to working 42 days unpaid on average over a year.
Those on an average salary of about £33,000 will be affected, paying an extra £4,040.
And middle class families with two people earning £60,000 will be up to £40,000 worse off over the next decade as a result of Chancellor Jeremy Hunt's stealth taxes, reports.
The analysis, commissioned by the Liberal Democrats, shows that someone on £60k will be £400 worse off this year but start noticing a decline significantly in the coming years.
They will be £1,630 worse off next year and by 2024-25, the number will have risen to £2,570.
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It comes as the head of Citizens Advice Dame Clare Moriarty warned higher-income families were getting help from charities for the first time.
Lib Dem leader Sir Ed Davey said: "Families are watching aghast as their pay cheques fall while mortgage costs soar.
"It is deeply shameful that the Conservative government has chosen to slash taxes for the big banks while hiking them for the public.
"This could have all been avoided if the Conservative Party hadn’t crashed the economy and sent interest rates spiralling with their botched budget."
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TaxPayers' Alliance CEO John O'Connell said: "Families feeling the pinch will be acutely aware of the taxman taking even bigger lumps out of their household incomes.
"The 40p rate was supposed to be for those on the highest incomes, but instead it’s becoming relatively normal for taxpayers who certainly wouldn’t consider themselves as well off.
"Politicians have to get a grip of spending and public service delivery, rather than take the easy option of reaching further into taxpayers’ increasingly empty pockets."
Last month, Jeremy Hunt's Autumn Statement meant millions of households would be worse off.
Mr Hunt extended a freeze on income tax and National Insurance thresholds until 2028.
It was meant to end in 2026. Extending it will keep millions more paying a higher tax rate.