Tax burdens to affect middle class most

Date: 8th December 2009

Income tax looks set to have a big impact on middle earners over the course of 2010, accountants have suggested.

Research by PricewaterhouseCoopers revealed that those earning approximately £30,000 will be the hardest hit, with this group often having young children and one partner not working.

This is because the pre-Budget report is expected to result in a 2.4 per cent decline in earnings for middle earners, with mortgages also having a big effect.

Additionally, the planned increase in national insurance contributions is expected to have an impact when changes take effect April 2011.

As well as freelance media professionals, middle earners often work in the nuclear, oil and gas and healthcare sectors, while a number of IT contractors could also be affected.

Next year will also see a higher VAT rate, increased petrol prices and larger council tax charges.

A person's income is taxed depending on the amount they earn and its source, with rates announced in the Budget every year.

Posted by Thomas Fletcher