The General Election:
This month, the Labour Party won the general election with a landslide victory, securing a majority government and ending the decade-long reign of Conservative rule. Labour’s policies focused on ideas around healthcare, education, and social justice – but a big question for many people is: how will this impact my finances?
To understand more about Labour’s stance on taxation, we need to look at their economic policies. Labour has stated that their aims are to:
- Ensure national debt is reduced
- Keep mortgage rates low
- Retain low inflation (at 2%)
- Not increase National Insurance, Income tax, or VAT
- Crack down on non-dom status to stop offshore tax avoidance
- Modernise HMRC to tackle tax avoidance
What does this mean?
In simple terms, Labour has committed to not increasing Income Tax or National Insurance for the average worker in the UK – also, they have pledged to maintain Corporation Tax at 25%, which is good news for businesses.
This means that in the short term, you can expect little change to your income. However, with changes coming to HMRC and Labour cracking down on tax avoidance, it’s more important than ever to ensure you’re fully compliant and understand what your tax deductions or implications are – whether you’re a contractor, employee, or employer.
But where will the rest of Labour’s budget come from? They plan to fund their initiatives through:
- A new windfall tax on oil and gas giants
- Reducing the number of people avoiding tax
- Changing VAT rules and governance for private school fees
How can you stay up to date with your HMRC requirements?
It can be overwhelming to stay up-to-date with the latest financial policies and regulations laid out by the Government and HMRC.
If you’d like to discuss your specific situation with one of our experts, please fill out our contact form for a free no-obligation discovery call. We’d be happy to provide tailored tax and payroll solutions: https://gifco.co.uk/contact/