Government figures have revealed that the 50p top rate of tax could gain the treasury an additional £12.6 billion in tax take over the next five years.
This will put pressure on the Chancellor George Osborne not to scrap the higher rate tax, amidst calls from a number of economists and conservative backbenchers that maintaining the top rate is harming economic growth.
The new figures though suggest that by 2015-16, the top rate for people earning over £150,000 could bring in £3.2 billion more than if the top rate remained at 40 percent.
This Treasury prediction takes into account the likelihood that some tax payers may maximise pension contributions or even move to another country to avoid paying the higher rate of tax.
However a contrary paper published soon to be published by the Institute for Fiscal Studies will say: “It is not clear whether the 50% rate will raise any revenue at all. There are numerous ways in which people might reduce their taxable incomes in response to higher tax rates; at some point, increasing tax rates starts to cost money instead of raising it.”
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Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.
His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.
Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.
Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.