Impact of budget cuts can be minimised with good advice
Experts enlisted by the Commons Treasury committee say that the ‘unfair’ tax changes introduced in this year’s budget are hitting the middle classes and stay at home mothers hardest. The freeze on higher rate tax thresholds and removal of the right to tax credits and child benefit mean that people who earn between £40,000 and £50,000 are disproportionately affected by the cuts.
The March 2011 budget also targeted small businesses with new regulations aiming to cut tax avoidance and evasion, but these too were not believed to meet principles of fairness, support for growth, certainty, simplicity, stability, practicality and coherence.
The experts said that the legislation is very complicated and some taxpayers affected by the rules will seek advice to help them avoid these new tax charges.
Note: Every case is different and relates to its own specific circumstances, which may affect the success of any appeal.