Income tax

More than a million extra middle-income workers will have been dragged into the 40p tax bracket by next year because of George Osborne's plans to boost income for the low-paid.

A higher threshold for income tax will be the Liberal Democrats' top priority at next month's Budget, deputy Prime Minster Nick Clegg will say today.

Chief secretary to the Treasury - and Liberal Democrat - Danny Alexander has ruled out a further cut to the top rate of income tax before next year's general election.

FIVE THINGS

Ed Balls has dismissed claims that Labour's plan to reintroduce the 50p top rate of tax is part of an "anti-business agenda" and said the move would be temporary.

Nick Clegg has said he is pushing his Tory coalition partners to agree to cut income tax bills by another £100.

A frozen income tax threshold coupled with mass auto-enrolment will result in the annual pension allowance being cut further, meaning people should increase contributions while they can, according to Prudential.

Deputy prime minister Nick Clegg has promised people earning minimum wage will pay no income tax should the Liberal Democrats stay in government.

The Law Society has urged the government to halt its proposed reform of the tax law that governs limited liability partnerships (LLP), a structure commonly used by advisory businesses.

HM Revenue & Customs (HMRC) issued a number of clarifications on the updated tax rebate position following requests from providers.