British soldiers sent to Eastern Europe could be hit with an additional £200 tax bill

BRITISH soldiers sent to defend Eastern Europe will face a £200 tax next month – while rental income from mansions in an area favored by the oligarchs will not be hit.

The 2.5% increase in National Insurance will mean that a mid-tier private earning £25,000 will see their pay cut.


UK troops could be hit with a £200 tax hikeCredit: Alamy

But as contributions are only paid on income from work, those who rent second homes will no longer escape the disbursements.

Online property sites suggest swanky homes in Kensington, west London, can earn owners more than £1million a year in rental income.

These are among the favorite postcodes of Russians accused of corruption or ties to the Kremlin, according to Transparency International.

The revelation comes ahead of the planned National Insurance hike which the Chancellor is under pressure to reverse as energy costs soar and inflation soars.

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Chancellor Rishi Sunak is coming under increasing pressure to reverse the rise in his spring statement next week to provide for the lowest paid workers in the cost of living crisis.

Shadow Chancellor Rachel Reeves said: “Why raise taxes on working people when inflation and prices are skyrocketing? It makes no economic or common sense.

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“It was not a good idea in September when the cost of living crisis started to spiral. It’s even worse now.

“It’s time to pull yourself together. The Chancellor must stop the National Insurance hike before it’s too late and look again at a windfall tax on oil and gas producers to cut home energy bills by up to £600.

Mary I. Bruner