Despite being potentially one of the most dreaded and mundane subjects, definitely not one for a dinner party, it still seems to be a hot topic and one standing centre stage in the media for the last couple of weeks… lets talk TAX.
While living costs have sky rocketed due to record breaking inflation rates not mentioning the fact we are at the tail end of two year a global pandemic AND amidst the largest war to happen in Europe since the end of World War II (77 years ago). The Russian oil sanctions have certainly meant that British consumers have felt the pinch, whether that be from household energy suppliers, forecourt fuel prices or price hikes on consumer goods. Many are close to their financial ‘breaking point’ at present with the average persons disposable income being diminished by upwards of £500 a year.
While in recent days there has been some effort to reduce the financial pressure with a 5p/ litre reduction in ‘fuel duty’ and an increased minimum living wage being implemented and commencing 01/04/22, many have felt these actions to be insufficient. This is likely due to the fact that you are likely only saving £3 in total filling an average 55 litre car and many feeling the minimum wage increase has been long overdue with the ever rising living costs.
National Insurance rates have risen while the thresholds have been increased. Meaning lower income households will benefit from paying a lower rate of NI and higher income households will experience the increase.
How have the changes in tariffs affected you and what other measures do you think need to be taken to help people through this financially adverse period?
