What The Conservative Party’s Tax Promises Mean For You
Following the recently concluded election, everyone is left wondering if the tax policies promised by all the major parties will become a reality. An increase in tax revenues and crack down on aggressive tax avoidance, are two of the most common themes.
But the Conservative Party promises more.
As announced in the budget, the tax-free Personal Allowance will be increased to £12,500 and the 40p income tax threshold will be increased to £50,000. The party also plans to pass a new law that will exempt anyone working 30 hours on minimum wage to pay income tax. The hourly rate will be increased to £8, which will result in £240 a week, or £12,480 a year.
But what does the tax cuts mean for seafarers, oil and gas workers, foreign workers in the UK and other employees?
Previously, the tax cuts introduced only benefitted oil companies and left plenty of oil and gas workers unhappy. This is because they would end up working long hours just to earn the same income. There is also a threat of job cuts and redundancies, especially with the continued drop in oil prices.
- The Conservatives plan to cut job tax to help businesses save up to £2,000 and provide more jobs to hard-working people. When this happens, anyone with an employment contract that is about to end can stop worrying too much about where to look for the next job.
- The party promised to cut income tax for over 26 million people. This means, from April 2015, a typical taxpayer can save £825 a year. Along with a significantly higher personal allowance, low income earners are seeing a glimmer of hope. As outlined by the HM Treasury, people with a salary that falls within the £10,000 to £15,000 bracket will have an annual saving of £500, while those earning within the £50,000 to £100,000 bracket will save £1,313 per year.
- They plan to welcome only those who want to work hard and contribute to the UK society, by clamping down on benefits tourism and health tourism as a means to control immigration. They will also introduce a new citizens test based on British values.
The Conservative Party is also looking out for the welfare of students and young people in the UK.
- There is a plan to spare the under 21s from all forms of jobs tax, so they can get a head start in life. And with a plan to help small businesses and enterprises create more jobs, students and young people can enjoy the security of a pay packet.
- They plan to continue to provide young people a chance to acquire vital employment skills by investing in new schools and offering millions of new apprenticeships.
In addition to these, the Conservatives are working hard to ensure that hardworking families get to enjoy financial security through lower mortgage rates. As this can only be achieved by a stronger economy, they promise to reduce the deficit and remove tax off the family home.
The tax policies that major political parties have outlined may not always become a reality after the election, but people have high hopes that the Conservative Party will not let them down. Not all of the policies may be realized, but a few changes here and there can make a huge difference, especially to the lives of the hardworking people.