Households should act now to fight the effect of ‘stealth taxes’ which are set to cost us an extra £7.5 billion this year.
The shocking figure was revealed by the Daily Mail this week, and comes amid the sting of rising house prices, soaring inflation, and frozen tax thresholds.
When people’s earnings rise to combat inflation but tax thresholds are static, more people are pulled into higher tax brackets. This is known as fiscal drag.
Dragged down: When people’s earnings rise to combat inflation but tax thresholds are static, more people are pulled into higher tax brackets. This is known as fiscal drag
However, there are clever tricks ordinary people can use to lessen the impact — and they shouldn’t wait until the end of the next tax year.
Shaun Moore, from financial advice firm Quilter, says: ‘Do not sit on your hands — take charge of your finances today.
‘The various tax thresholds may not be as good for a long time to come.’
Here are some of the main tax…
