Sly stealth tax hikes will pick Brits' pockets

BRITONS will pay even more tax next year regardless of what Rachel Reeves does in her November Budget, because so many tax thresholds and allowances will remain frozen again.

- By Harvey Jones

Some haven’t changed for 40 years, others have been cut, dragging people into higher tax brackets by stealth. But there are ways of fighting back.

The personal allowance, frozen at £12,570 until at least 2028, is gradually withdrawn once earnings exceed £100,000, creating an effective 60% tax rate. High earners claiming Child Benefit also face a creeping charge, which begins at £60,000 and hits 100% at £80,000.

Even ordinary pay rises can tip families into losing tax-free childcare, worth up to £2,000, and entitlement to free nursery hours once a parent’s salary passes £100,000.