(Part 1 of a 3 part blog series)
Labour were the first party to reveal their brightly coloured manifesto on 16th May for the 2017 general election.
The early bird catches the worm… But will they fly away with the election or get stuck in the mud?
The party want to prove they are ‘’the party of low taxes for middle and low earners’’
So, let’s start with the good news. There is no NI or VAT increases.
Income Tax
Labour have insisted that the income tax rise will hit just 5% of earners.
They want to reduce the current additional rate band (when you start getting taxed at 45%) from £150K to just £80K. Not only this, but those earning over £123K (Not sure why they chose this number, might just be the first on the calculator) will be hit with a 50% charge!
Doesn’t sound great for the big earners, but the worst is yet to come, if you earn over £330K there is an ‘excessive pay levy’ being introduced of 2.5%, which reaches 5% if you’re earning over £500K.
Ok – so the good news didn’t last long…
In a nut shell, Labour are proving the ‘working class’ are not to be effected.
If you earn £26K a year, you will not be liable for any additional tax.
Corporation Tax
Now, the entrepreneurs amongst you will be wondering how it will affect you.
In short… Not well.
The largest tax rise in the proposal is an increase in corporation tax to 26%. But hey, they probably won’t stop there… They have said reliefs on corporation tax will also be reviewed.
For both individuals and companies HMRC are going to be hot on your heels too, as they will be given extra rights to battle against tax avoidance.
Extra points worth noting.
Zero hour contracts will be abolished along with unpaid internships.
Minimum wage will be increased to at least £10 p/hr by 2020.
Paternity pay will be increased and leave doubled to 4 weeks.
4 new public holidays!! (What a way to sway votes)/
Scrap Making Tax Digital all together for businesses turning over less than £85K.
Abolish student fees.
I mean, this one tickles me… They introduced them in the first place… It’s like letting your dog do its business on the side of the street, letting several people walk through it and then cleaning it up to claim you’re the hero.
BUT, don’t make up your mind just yet. The Lib-Dem and Conservative blogs will be published throughout the week. Hang tight.
PS – just in case you needed a little pick me up from all the numbers, here are four fun facts about the party leader;
Jeremy Corbyn
He is an avid ‘drain spotter’ and has photographed manhole covers throughout the country.
He is a vegetarian and has been since the age of 20 following a stint working on a pig farm in Jamaica.
He supports Arsenal FC
He has a cat called El Gato (Spanish for ‘The Cat’)