Mortgage News
Tax and benefit changes to “clobber” millions, says Labour
Millions of people will be affected by tax and benefit changes coming into force on Friday – changes Labour has labelled a “tax bombshell”.
The changes, announced by Chancellor George Osborne over the past 18 months, mean the time couples with children will have to work to qualify for working tax credits will rise from 16 to 24 hours, reports the BBC.
The beginning of the tax year on 6 April will see a significant number of changes to tax and benefits – affecting personal and family finances.
But Labour said they amount to a “tax bombshell” which would “clobber” families.
Under the new rules, the amount of income that is tax free will rise by £630 to £8,105. The value of some benefits will rise by 5.2%, linked to inflation last September.
Ministers have said they are targeting support to those who need it most and millions will benefit from the rise in income allowances this week as well as a further planned £1,000 increase next year.
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