The 200th anniversary of the Battle of Waterloo takes place on 18 June 2015 and I am looking forward to attending the large re-enactment to commemorate the event.
It is well known that the battle brought an end to the Napoleonic era after Napoleon finally abdicated and was exiled to Saint Helena.
What is not so well known is that:
Income tax was initially introduced by William Pitt the Younger in 1798 to pay for the Napoleonic wars.
It was charged at a rate of two old pence in the pound on incomes over £60 (£5,600 in today’s money) and increased up to a maximum of two shillings or 10% on incomes over £200.
Income tax made a surprise return in 1842 when it was re-introduced by Robert Peel as temporary measure to fill a growing budget deficit.
Despite repeated promises of politicians in the second half of the 19th century, in particular Benjamin Disraeli and William Ewart Gladstone, to repeal the 'unjust, unequal and inquisitorial' income tax, it became a permanent fixture of government revenues.
Abolishing income tax in modern times is pretty much unthinkable as it represents a quarter of the government’s revenues and is the second largest source of income after VAT and duties at 28%, but before national insurance at 17%.
If you're not clear about the current personal income tax rates and allowances, you can find these at our website
And of course it goes without saying that if you need any assistance with your tax and accounting matters, please do not hesitate to call us on 01628 617100 or contact me by email richardpreedy@taxassist.co.uk.
Not many of us will be around for the future centennial anniversaries of the Battle of Waterloo, but sadly it is probably safe to predict that income tax will be!
