Workers braced for higher taxes

Workers brace for higher taxes

Workers in the UK are set to face an additional tax burden of up to £4,000 next year due to changes announced in the Budget. The adjustments include higher capital gains tax (CGT) rates, reduced dividend allowances, and frozen income tax thresholds, which will impact all salary levels. According to Myron Jobson, senior personal finance analyst at Interactive Investor, the Budget announcements "are likely to impact every type of worker.” Higher earners, particularly those making £100,000 and above, will experience the most significant increases, with a projected CGT rise of £3,836. The freeze on the personal allowance until April 2028, combined with wage inflation at 4.8%, is expected to push more workers into higher tax brackets, exacerbating the financial strain.