Welcome to the Christmas 2024 Newsletter from Walsh & Co
The number of taxpayers finding themselves caught in the 60% 'tax trap' rose by 45% in the past two years, according to a Freedom of Information (FOI) request.
Number of taxpayers caught in 60% 'tax trap' rises
The number of individuals caught in the 60% 'tax trap' has risen by 45% in two years, a FOI request has revealed.
In 2023/24, 634,000 taxpayers were predicted to be caught in the 60% tax bracket, which was up by 45% from 2021/22's figure of 436,000.
The 'tax trap' takes effect when a worker earns more than £100,000 - at this point, an individual's personal allowance (which is currently frozen at £12,570) starts to taper away. The personal allowance has been frozen at this figure since April 2021 and the freeze is set to be maintained until 2028.
The number of taxpayers estimated to lose all of their personal allowance is set to surpass one million by 2027/28.
A spokesperson for the Treasury said: 'We are committed to keeping taxes low for working people, which is why we protected payslips from tax rises and are not extending the freeze on personal tax thresholds past 2027/28.'
ESSENTIAL TAX DATES FOR JANUARY
1 January
Due date for payment of corporation tax for period ended 31 March 2024.
14 January
Due date for income tax for the CT61 quarter to 31 December 2024.
19 January
PAYE, Student loan and CIS deductions are due for the month to 5 January 2025.
PAYE quarterly payments are due for small employers for the pay periods 6 October 2024 to 5 January 2025.
31 January
Deadline for submitting your 2023/24 self assessment return (£100 automatic penalty if your return is late) and the balance of your 2023/24 liability together with the first payment on account for 2024/25 are also due.
Capital gains tax payment for 2023/24.
Balancing payment – 2023/24 income tax and Class 4 NICs.
QUOTE OF THE MONTH
'We were pleased that additional funds have been promised by the government at the Budget - we now need to see this plague of potholes being fixed rapidly and efficiently, resulting in a major improvement in our roads.'
Tina McKenzie, Policy Chair at the Federation of Small Businesses, commenting on small firms having to count the cost of pothole damage to company vehicles.
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