Headline grabbing announcements in the Budget do little to hide the three brutal truths and the billion bombshell that will mean excruciating pain for many in the UK
The anorak wearers amongst you in reading about the budget have spotted in Table B.5 on page 104 of the Treasury’s full “Budget 2013” document (which you can download here http://www.hm-treasury.gov.uk/budget2013_documents.htm) National Debt is going to rise in the next 5 years from £1,189bn to £1,637bn
That’s a staggering increase of £448bn. Given that there are 63.2 million people in the UK, that equates to £7,088 per person. try obtaining that on an interest free credit card!
So today I’ve launched a free “2013 Tax Minimisation Review” initiative to help local taxpayers and businesses get to grips with the pain behind the Budget.
There are some very welcome headline grabbing announcements in this Budget. But we shouldn’t get carried away, since the underlying message is one of three brutal truths.
The first brutal truth is that public finances are still in a terrible mess.
In fact, the bombshell is that the people and businesses in the UK will be forced find an extra £448 Billion just to pay back our share of the extra money the government is now going to borrow over the next 5 years. So for some local people the pain is going to be excruciating as the country balances the books with even higher tax bills, even lower wage increases and even fewer public services and benefits.
And even if they work hard and manage to avoid all of that, high earners could find the government taking up to 60p from every extra pound they earn: 60% – is the effective tax rate on income just above £100,000 due to the withdrawal of the personal allowance.
Middle earners could have as much as 65p taken from them http://www.independent.co.uk/news/uk/politics/middle-classes-face-65-tax-rate-after-child-benefit-squeeze-8439162.html
While low earners can lose a staggering 73p once the claw-back of benefits is also taken into account http://www.thisismoney.co.uk/money/news/article-2242158/The-families-hammered-73-tax–income-tax-National-Insurance-combine-loss-benefits.html
The second brutal truth is that it is businesses and not Budgets that offer us the best hope of putting things right by replacing the jobs and wealth lost, and generating the extra taxes needed to pay for everything. So the region’s job and wealth creating businesses need to stand up and be counted by taking urgent action to make it happen.
The third brutal truth is that the 2013 tax regime is hideously complicated and contains a huge number of pitfalls for the unwary.
The good news, though, is that it now also allows the really well advised to make some very big tax savings. And that’s why we’ve launched our free 2013 Tax Minimisation Review service for businesses and individuals – to make sure that no-one suffers by paying a single penny more than their fair share of tax.”
Readers who do not want to pay a single penny more tax than they need to can claim a free 2013 Tax Minimisation Review by calling Iain] on 0191 206 4080.
Further information on this topic can be obtained from Iain@iainwallis.com