Personal Tax Accountant Says That More Money In Your Pocket Will Not Make You Better Off.
Posted: Friday, April 15, 2011
by Liz Fletcher
Spirit OF Nature
A personal tax accountant has said that ordinary people might not end up better off following Government plans announced in the budget to give workers more disposable income through the personal allowance.
The amount a person can earn before paying income tax will increase to £7,475 in April 2011, handing a virtual tax break to all British workers.
Tax newsletter author and personal tax accountant Peter Lashmar from Lymington in Hampshire, said: “The cost of living has gone up substantially since 2008, while people’s salaries have increased by very little, if at all.
“These facts, together with the rise in VAT at the beginning of the year, mean that people in the UK actually have less disposable income than three years ago, despite the chancellor giving a bit back.”
“The budget speech was after all given against a scene of high oil prices and rapidly rising inflation, plus the worst unemployment for 17 years.” The personal tax accounting expert added.
In addition, George Osborne announced that the personal allowance would increase again in April 2012 to a more substantial £8,105.
So will this second increase in the personal allowance make a tangible difference to poorer people’s lives?
The personal tax accountant says the future is still not clear.
“I wish I could give a definitive answer, but the fact is that we live in very turbulent economic times. Peter Lashmar said.
“It may be that what comes off taxes just goes onto prices - but a rise in interest rates certainly appears to be on the cards at the Bank of England, so this could help to calm things down.”
“If you are experiencing problems with tax you should talk to an independent personal tax accountant without delay.” He added.
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