40p tax threshold could be raised
01 Aug 2014
Prime Minister David Cameron recently hinted that he would ‘love’ to raise the threshold of the higher tax rate.
In a speech made to workers in Warrington, Mr Cameron acknowledged that many ‘who don’t see themselves as fundamentally wealthy’ are paying the 40% rate, which applies to those earning over £41,865 per year.
According to the Office for National Statistics, the average income for those in full time employment is £29,300 for men and £23,600 for women.
Mr Cameron was keen to qualify his comments, saying: ‘I understand the problem with the 40p rate kicking in when people are not earning a lot of money, and I have to look very carefully at the books before I can make any promises’.
He added: ‘Now I would love to be able to stand here and say we are going to sort all this out, we will raise the thresholds of all these tax rates. I can’t make that promise today’.