This is Money Podcast19 Touko 2023

Should we stop dragging people into tax designed for the rich?

Almost five times as many people will soon be paying 40 per cent tax than in the early 1990s, when it was seen as a tax bracket reserved for the rich, the Institute for Fiscal Studies warned this week.

It said that fiscal drag triggered by freezing the higher rate tax threshold would pull 7.8million people into its net by 2027.

The study suggested that the threshold would have to be almost doubled from its current level, at £50,271, to almost £100,000 to return the tax band to the level intended for it.

Alongside the report, came the IFS’s warning that 40 per cent tax had stopped being the preserve of high-earning professionals and was now hitting electricians, plumbers, teachers, nurses and more.

The taxman nabbing 40p of every pound earned from a pay rise rather than 20p comes at a time when workers are running to stand still, with inflation at just above 10 per cent.

So, is it time the government stopped taxing by stealth and using tools like fiscal drag – instead raising thresholds with inflation or wages?

And is it time to hike the higher rate threshold and pull people back down to basic rate tax?

On this podcast, Georgie Frost, Lee Boyce and Simon Lambert discuss the thorny issue of tax and who counts as wealthy.

The debate moves on to inheritance tax – another levy designed for the very rich but now hitting the wealthy middle classes. Why is IHT so unpopular when most don’t pay it and does it need reform?

Plus, how much have you lost to inflation, will you get Nationwide’s new £100 Fairer Share bung, and finally, would you buy food two years past its best before date for big savings?

Email us hello@dmgmedia.co.uk

Text us 020 7938 6000.

Hosts: Georgie Frost, Simon Lambert, Lee Boyce, Helen Crane

Producer: Georgie Frost

Hosted on Acast. See acast.com/privacy for more information.

Tämä jakso on lisätty Podme-palveluun avoimen RSS-syötteen kautta eikä se ole Podmen omaa tuotantoa. Siksi jakso saattaa sisältää mainontaa.

Jaksot(657)

Is a mansion tax for properties 'worth' £1.5m or more fair?

Twice as many households could be forced to pay a new 'mansion tax' latest speculation suggests - the threshold may fall from £2million to £1.5million.That rumour comes with Andy Burnham expected to b...

10 Heinä 37min

Halifax to vanish as Lloyds ditches the brand - should we care?

Goodbye Halifax! It’s being scrapped by Lloyds after 173 years. But why would you kill off one of Britain’s best known and trusted banking brands?Georgie Frost, Lee Boyce and Simon Lambert discuss the...

3 Heinä 48min

Bonus episode: Bank of England's Victoria Cleland on the future of cash - and wildlife on banknotes

On this bonus episode of the This is Money podcast, Lee Boyce speaks to Bank of England chief cashier Victoria Cleland on her views over the future of cash.We talk about why preserving choice in payme...

1 Heinä 15min

Can Andy Burnham fix Britain's tax and financial headaches?

Another one bites the dust. Sir Keir Starmer has resigned just two years in to being Prime Minister.This latest rotation of Britain's PM merry-go-round comes despite Starmer having done nothing partic...

26 Kesä 42min

Should you ask for an early inheritance?

Most families don't pay inheritance tax but those that do can get hit with huge bills running into hundreds of thousands of pounds.With pension pots soon to be included in calculations, this is going ...

19 Kesä 49min

House prices vs inflation: The slow motion property slump

Follow us on Instagram @dmgnewmedia.Follow us on TikTok @dmgnewmediaFollow us on X @dmgnewmediaEmail us hello@dmgmedia.co.ukText us 020 7938 6000.Hosts: Georgie Frost, Simon Lambert, Lee Boyce, Helen...

12 Kesä 39min

The big inheritance shake-up for unmarried couples - and what it means

The government is planning a major inheritance shake-up for unmarried couples but does it go far enough and will it trigger a wave of disputes?On this week's podcast Georgie Frost, Lee Boyce and Simon...

5 Kesä 52min

Would you take a £1m lump sum or £1,000 a week for life?

It's the sort of theoretical question you might discuss at the pub with your mates. If you won the lottery and had the choice, would you pick a £1million lump sum, or take £1,000 a week for life? Pol...

29 Touko 39min