10p Tax To Return?
DAVID Cameron has given his biggest hint yet that the 10p tax, axed by Gordon Brown in 2008, may soon return.
The Prime Minister said, in a debate on the economy with Labour Party Leader, Ed Miliband: “We won’t forget about the abolition of the 10p tax rate.”
He and a group of Tory MPs are thought to be working together to reinstate the bracket.
Typically this would mean the first £2,500 earned would be taxed at 10p, rather than 20p, making a welcome relief for low earning workers.
A spokesperson for Expert Market said: “Obviously nothing has been confirmed, but an extra £250 a year would be very welcome for a lot of SME employees who might not earn very much.
“It is still an incredibly difficult time financially and any extra money would be welcome to most people. It is important to remember though, this new increased taxable income bracket now covers what the previous 10p tax did.
Speaking today (February 14) Ed Miliband agreed with his opposition.
He said: “Ed Balls and I want a 10 pence tax rate and a mansion tax in government.
“We’ve rightly said that we will only set out our tax and spending commitments at the next general election.
“That is the way a responsible opposition should conduct itself.
“However this is a clear signal about the priority we attach to a fairer tax system and the living standards of working people.”