Tax cuts and DWP reform that could give families £45,642 boost if Tories win election | Personal Finance | Finance

The Conservative Party‘s plans to cut taxes and change Child Benefit if re-elected could provide a boost of over £45,000 for families.

Wealth firm True Potential has crunched the numbers to work out that a family could get a £45,642.20 boost to their finances if they take advantage of the prospective policies.

They worked out that plans to scrap Class 4 National Insurance (NI) contributions could save a self-employed person on the average £35,000 salary a total of £1,286 in tax, while the further 2p cut in NI for workers will mean a £450 tax cut for employees.

The plans set out in the Conservative manifesto to increase the threshold where Child Benefit claimants pay back their benefits, up to £120,000, could save a family £1,500 a year.

This means the average family where one person is self employed and one person is a full-time employee could sabe £3,236 a year.

If this amount were invested, with an average six percent return, after 10 years they would have an extra £45,642.20.

Neil Rayner, head of Advice at True Potential, said: “The Conservative manifesto promises some big tax cuts to key sectors of our society including the self-employed and families.

“With the tax burden at an all time high, the next Government should be seeking to lower this burden to hand families a lifeline and allow them to start building a financial foundation that they can use to achieve their long term financial goals.”

The Labour Party promised in their manifesto they would not increase income tax, National Insurance or VAT.

Labour have also set out to cap corporation tax at the current rate of 25 percent.

While in Government, the Conservatives previously reduced National Insurance by 2p on two occassions, reducing taxes by £900 a year for the average worker.

Reform UK have also set out plans to cut taxes, with a proposal to reform inheritance tax so it only applies to those with an estate worth £2million or more.

The party led by Nigel Farage is also planning to halve the tax rate for the current 40 percent to 20 percent with an “option to donate to charity instead”.

The Conservatives also reiterated their “long term plans” to get rid of National Insurance in their manifesto. They said: “If you vote to stick with the plan, Rishi Sunak and the Conservatives have set out our long-term ambition to abolish National Insurance entirely.

“So we’ll end the unfair double tax on work and support the workers who keep our economy going.”

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