Everything you need to know about the “Granny Tax”

Up until lunchtime last Wednesday the term “Granny Tax” had rarely if ever been used, now everyone seems to have an opinion about it. “Granny Tax” was quickly trending on Twitter and with headlines like “Pensioners robbed”, “The great granny tax grab” and “Robbed”, there was no doubt what the newspapers thought. But what is the “Granny Tax”? How will it affect you? How much will it cost you? Read on to answer all these questions and more. What has changed? The changes were made to the age related Personal Allowance, which is the amount an individual can earn before paying tax....

Budget 2012 Reaction: More people dragged into Higher Rate Tax

Research has shown that even people of “relatively modest salaries” will be dragged into higher rate tax as a result of this week’s Budget. The Institute for Fiscal Studies (IFS) has predicted that as many as five million people could be paying higher rate tax, at 40%, by 2014; by contrast last year 3.7 million people paid tax at the upper rates. In the Budget George Osborne also announced the end of age related allowances for those people over 65. The IFS said the “granny tax”, as it has quickly been dubbed, would cost pensioners approximately 0.25% of the annual income in ...

Budget 2012: Winners & Losers

The main Budget headline was certainly grabbed by the "Granny Tax" which in many ways has eclipsed the increase to the Personal Allowance and the cut in the higher rate of tax from 50p to 45p. The devil if of course always in the detail, look more closely, who were the winners and losers from today’s Budget? Read on to find out. Winners Lower earners The increase in the Personal Allowance to £9,205 from April 2013 will take even more people out of the tax system, according to the Chancellor 24 million people earning below £100,000 a year will benefit. High earners Those people earning ...

Budget 2012: The main points

George Osborne has delivered the 2012 Budget; he opened by saying that the Budget would “reward work” and that Britain “is going to earn its way in the world”. He also said that it was a Budget for families and was “unashamedly on the side of business and aspiration.” So, what were the main points? How will you be affected? The main headlines were created by two announcements on Income Tax, so let’s start there. Income Tax The Chancellor announced the largest ever increase in the Personal Allowance to £9,205 from April 2013. The Chancellor said that 24 million people earning below £100,000 per year ...