Taxpayers will be worse off under Labour following the Conservative pledge to extend the basic rate band to £50,000.
Robert Pullen, Senior Tax Manager at Blick Rothenberg, said: “This effectively reduces the basic tax rate from 40% to 20%, and means that an individual earning just over £40,000 would be charged less income tax under a Conservative than a Labour government”
Pullen added: “All of the main political parties have forgotten families with one breadwinner – an individual earning £54,250 will pay the same amount of tax as two individuals earning £40,000 each. Whoever wins the election has neglected this group of voters by not correcting this disparity in income tax rates, as well as the child benefit anomaly.”
Blick Rothenberg has produced a graph showing effective rates of income tax based on the different parties manifesto promises.
Referring to the graph, Pullen said: “From an income tax perspective it is clear that whoever wins the election people earning over £40,000.00 will be impacted in totally different ways.”
For more information please contact Robert Pullen.