Tax Warning: Stealth and Wealth Taxes Could Launch in 2022 as HMRC Misses Billions | Personal Finances | Finance
Boris Johnson has already announced that national insurance rates will rise from April to cover rising NHS costs. On the other hand, Mr. Sunak assured that the government will reduce tax costs as much as possible to ease the burden on taxpayers.
The Chancellor has already announced a series of tax freezes in the spring budget, but Shaun Robson, head of wealth planning at Killik & Co, warned that it is important to “not underestimate” the effect of tax freezes because they can lead to higher taxes owed where income and assets are affected by inflationary increases.
This will likely be on the minds of many, as inflation in the UK recently hit 5.1%, the biggest increase in around a decade.
Mr Robson argued that the freezes are “thus a way for the government to increase tax revenue through measures without introducing additional taxes and could be considered to fall under ‘stealth tax’ territory.”
He continued: “This remains an interesting topic for 2022, especially in light of reports that the Chancellor may seek to reduce income tax rates and in fact abolish the top-rate tax bracket on income. higher ahead of the 2024 election – a move that could cost the government significantly given that their most important revenues come from income taxes according to the Office of Fiscal Responsibility.
READ MORE: Dave Ramsey suggests how 60-year-old man without a pension can get by