The only real beneficiary of the latest budget is the Labour party, says the ICAEW. Rob Lewis reports.
The reforms may appear drastic, but their effects will be far smaller than purported, said Frank Haskew, Head of the ICAEW tax faculty. Theres a lot of headline grabbing stuff, but when you look at the numbers, its a merry-go-round, he added.
Hes dropped 2% on corporation tax, but hes reducing the allowance for plant and machinery, this nets out with a positive figure. Its actually a revenue raiser. Similarly, hes decreased income tax by 2%, which will cost the Treasury about 8 billion. But then hes removed the 10% threshold on personal income, and hes aligned the high-rate threshold for national insurance and income tax, which should earn him about 8.4 billion.
Beneath it all, it cou...