Middle-class families including many motorsport business owners face £40,000 stealth tax on incomes
Middle-class families including many motorsport business owners will be up to £40,000 worse off over the next decade due to stealth taxes designed to reduce government borrowing. Jeremy Hunt’s Autumn Statement saw the Chancellor set out plans to freeze the levels at which people pay different rates of income tax until 2028 at the earliest. Economists have warned that this would drag thousands more families including many in motorsport into paying tax at a time when earnings were failing to keep pace with inflation. Research from the House of Commons Library shows that a family with two earners on £60,000 a year each will be £40,880 worse off over the decade than they would have been if income tax thresholds had risen in line with inflation. A worker earning £60,000 a year will pay more than £134,000 in income tax during the next decade – 18% more than it would have been had the thresholds not been frozen. This means the worker will be £20,440 worse off. The analysis also found that someone on an average salary of about £33,000 will pay an extra £4,040 in income tax because of the freezing of the personal allowance. These stealth taxes will hit many motorsport business owners particularly hard.