{"id":3014,"date":"2022-11-21T04:00:00","date_gmt":"2022-11-21T04:00:00","guid":{"rendered":"im-24582"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T00:00:00","slug":"fiscal-drag","status":"publish","type":"post","link":"https:\/\/ep-accountants.co.uk\/fiscal-drag\/","title":{"rendered":"Fiscal drag"},"content":{"rendered":"

You may have encountered this phrase, fiscal drag, in recent weeks, particularly if following the Autumn Statement announcements last week.<\/p>\n

A large part of Chancellor Hunt’s announcements confirmed that rates and allowances for Income Tax are to be frozen at current levels until April 2028.<\/p>\n

Your immediate response to this news may have been one of ‘underwhelm’. No changes so no worse-off.<\/p>\n

But in many cases, this would be an incorrect assumption.<\/p>\n

As we are frequently reminded, with inflation currently running at over 11%, you would need to secure a pay increase of 11% to maintain the purchasing power of your take-home pay.<\/p>\n

Unfortunately, if you are already a taxpayer, you would need a pay increase in excess of 11% to maintain your spending power.<\/p>\n

For example, freezing your annual tax-free personal at the current £12,570 means any additional income you earn will by taxed (on the assumption that you are already paying tax) and it will be payable at your top rate.<\/p>\n

In certain circumstances, this may mean paying tax at higher rates for the first time.<\/p>\n

This double hit on your earnings, from inflation and tax on pay increases, will likely result in falling disposable income in the coming years.<\/p>\n

May be time to dust off ideas for additional income streams?<\/p>\n

Source: Other Mon, 21 Nov 2022 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"

You may have encountered this phrase, fiscal drag, in recent weeks, particularly if following the Autumn Statement announcements last week.<\/p>\n

A large part of Chancellor Hunt\u2019s announcements confirmed that rates and allowances for Income Tax are to be<\/p>\n","protected":false},"author":1,"featured_media":3015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/3014"}],"collection":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/comments?post=3014"}],"version-history":[{"count":0,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/posts\/3014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media\/3015"}],"wp:attachment":[{"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/media?parent=3014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/categories?post=3014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ep-accountants.co.uk\/wp-json\/wp\/v2\/tags?post=3014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}