PARENTS COULD be hit by a marginal income tax rate of 78% because of the complex way benefits and taxes interact, leading accountants argue in the Daily Telegraph .
Grant Thornton forecasts the Chancellor's Pre-Budget Report will freeze personal allowances - as he has done before - but the effect will be for tax to absorb more than three quarters of some parents' pay rises. Baker Tilly and the Institute of Chartered Accountants in England & Wales (ICAEW) have urged Gordon Brown to simplify the system and reverse the trend toward stealth taxes, warning "the bond of trust between tax authorities and tax payers is in danger of breaking". Ian Luder, tax partner at Grant Thornton, said: "By freezing allowances, Gordon Brown will drag more people into th...
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