Friday, July 7, 2006
Category:
Consolidation
Britons struggling with high utility bills, credit card debt and huge overdrafts have also been hit by a considerable rise in taxes since Labour came to power, new research has indicated.
Many homeowners are experiencing massive growth in stamp duty and fuel tax, which can prove to be a significant burden on households, leaving many to turn to debt consolidation loans as a way of organising their finances.
A new study by accountancy firm BDO Stoy Hayward has found that in the last year alone the government has gained 60 per cent more tax from petrol sales, while the amount filling the Treasury's pockets from capital gains tax has soared by 26 per cent. Stamp duty is also adding to the difficulties for many households, with Labour receiving 135 per cent more tax since they came to power in 1997.
"Taxpayers have particularly felt the squeeze on fuel duty and stamp duty. Combined, these taxes have increased by an astonishing 283 per cent since the government came into power, and have directly affected the pocket of most UK tax payers," Stephen Herring, tax partner at BDO Stoy Hayward, told MyFinances.co.uk.
British households are also paying more income tax, which combined with value added tax, corporation tax and stamp duty accounts for 82 per cent of the total amount collected by the government every year.
Debt
consolidation loans may help households that are struggling with high tax costs on top of their other expenses. By organising all debts into just one monthly payment, it can be easier for people to stay in control of their money and keep a track of their financial situation. However, Britons are advised to consider this move carefully before taking the plunge, to make sure debt consolidation loans are suitable for their circumstances. It is important to remember that repaying your borrowing over a longer term will increase overall interest charges.
