Universal credit tax rate hindering employment efforts, says Blick Rothenberg

While the Government's commitment to getting the unemployed and under-employed back into the workforce is commendable, the practical implementation of this policy remains to be seen.

Given that the top rate of income tax in the UK is 45%, it is inequitable that Universal Credit recipients face an effective tax rate of 55%.

The high clawback rate, combined with PAYE and National Insurance contributions, discourages claimants from increasing their working hours, counteracting efforts to combat underemployment.

Read at Business Matters