High Earning Agents Could Be Required To Pay More Tax Under New Plans

High earning estate agents may soon find themselves paying more income tax as the government attempts to fill a near £60bn fiscal black hole.

Rishi Sunak is considering expanding the top rate of income tax next week after the Treasury warned that more money was needed to protect pensions and benefits, the Telegraph has reported.

Raising the 45% top rate or lowering the £150,000 annual income threshold at which it kicks in are reportedly options now being discussed.

Such a move would be a dramatic reversal of the situation from September, when the now former PM Liz Truss scrapped the 45% rate, before reinstating it later when financial turmoil in the markets forced her to tone down her plans.

The Treasury is also looking at increasing the National Insurance rate paid by employers by 1.25%, the newspaper said.

Raising the rate of income tax or national insurance will undoubtedly prove unpopular, in part because it would break an explicit pledge made in the Tory 2019 general election manifesto.

The government is attempting to plug the financial deficit with a combination of spending cuts and tax hikes.

The chancellor, Jeremy Hunt, will unveil his autumn statement on 17 November.

Households could face huge hikes in council tax