Mini budget 2022: Brit workers may get extra £250 tax cut this week as 1p slashed from basic rate | The Sun
SQUEEZED British workers could bank an extra £250 a year if the basic rate of income tax is cut as expected.
Chancellor Kwasi Kwarteng is considering bringing forward his predecessor's proposal to knock off a penny – from 20p to 19p in the pound – in his emergency mini budget next week.
Rishi Sunak previously said this would take effect in two years, but Prime Minister Liz Truss is said to want to fast-track the move as part of the "punchy" £30billion pack of support measures, the Daily Mail reports.
It would mean those on an average income – £38,131 for a full-time role in 2021 – could get a £255 boost.
Tax is only paid on the first £12,570 earned, which leaves £25,561 to be taxed.
Under the current rate of 20 per cent, this works out at £5,112.20.
READ MORE ON MONEY
Brits in certain areas of UK to have taxes SLASHED under proposals
Exact amount you could save in taxes and bills after mini-Budget next Friday
But if the basic rate of income tax is slashed from 20p to 19p in the pound, this falls to £4,856.59, meaning an additional £255.61.
An announcement is expected on Friday, but the new rate would not take immediate effect.
The emergency statement will also include further details on the the £150 billion energy bill bailout.
Ms Truss is capping energy prices so the typical family will pay no more than £2,500 for their bills over the next two years.
Most read in The Sun
William & Harry show united front together leading Queen's grandchildren
Holly & Phil face fan backlash after skipping queue to see Queen's coffin
Dan Walker defends David Beckham after troll accuses him of 'publicity stunt'
Note left by mum of an autistic son on a stranger's car totally divides opinion
She is also expected to help hard-up couples struggling with the rising cost of living.
Millions of couples, where one earns less than £12,570, could save up to £2,500 if she transfers all personal tax allowances between married couples and civil partnerships on low incomes.
This would mean the lower earner can "gift" £1,260 of allowance and save £214 in tax, the Sunday Mirror reports.
Elsewhere, the 1.25 percentage point rise in National Insurance is set to be scrapped, along with a planned rise in corporation tax next year.
Both were flagship promises of the PM's Tory leadership campaign to let Brits keep more of their cash.
And Ms Truss has drawn up plans to slash taxes for those who work in deprived areas of Britain – known as "investment zones".
Read More on The Sun
Lady Louise Windsor paidtouching tribute to her grandparents during vigil
Viewers all say the same thing about Queen’s grandson, 14, during vigil
Businesses that move to and invest in these areas will have their levies cut and be freed from red tape – like eco rules that can block new development.
But the scheme could also see personal taxes – like income and NIC contributions – slashed for people who live and work in these regions.
Source: Read Full Article