10p tax band

[shifty_uk]

Can someone explain what exactly the '10p tax band' is....in layman's terms, preferably. I hear about it constantly but don't fully understand.

Does it have something to do with the 10% income tax deducted from low earners?

 

[weringo]

After your tax free allowance you were previously taxed 10% of your earnings up to £2,230, and then 22% from there up to £34,600.

Now you're taxed 20% on anything up to £36,000 (after you're tax free allowance.)

 

[Felix]

And from September the personal allowance will increase by £600 and the higher rate will decrease by £600 to starve off a back bench revolt...

 

[dirtydog]

Can someone explain what exactly the '10p tax band' is....in layman's terms, preferably. I hear about it constantly but don't fully understand.

Does it have something to do with the 10% income tax deducted from low earners?

Did you try google?

The 10% band has now been abolished. Previously, ALL taxpayers paid tax at that rate on at least part of their earnings - even billionaires.

 

[shifty_uk]

Did you try google?

The 10% band has now been abolished. Previously, ALL taxpayers paid tax at that rate on at least part of their earnings - even billionaires.

Yes, I tried google. I understand if we're talking percentages. It was the 10p part that got me a bit confused.

 

[dirtydog]

10p in the pound. 10%.

 

[Felix]

Basically means 10p in every pound.

 

[shifty_uk]

I get it now. Thanks.

 

[chippie]

Actually, the 10% starting rate has not been completely abolished.

It still exists, but is only applies if your only income is interest from bank/building society accounts, in which case the first £2230 after the personal allowance will be taxed at 10%, then the rest at 20% then 40£.

 

[moogie]

And from September the personal allowance will increase by £600 and the higher rate will decrease by £600 to starve off a back bench revolt...

they have actually dropped the higher rate by £1200 even though AD said £600 in the commons

 

[Munky1080]

Actually, the 10% starting rate has not been completely abolished.

It still exists, but is only applies if your only income is interest from bank/building society accounts, in which case the first £2230 after the personal allowance will be taxed at 10%, then the rest at 20% then 40£.

I assume you mean 40% - and it's that's the case...it's absolutely DISGRACEFUL! No one should ever have to pay 40% income tax!

 

[Mad old tory]

I assume you mean 40% - and it's that's the case...it's absolutely DISGRACEFUL! No one should ever have to pay 40% income tax!

I agree, although it's only 40% of any income over the threshold.

 

[Kappa]

I assume you mean 40% - and it's that's the case...it's absolutely DISGRACEFUL! No one should ever have to pay 40% income tax!

I see worms everywhere.

Dont see whats wrong with 40% tax.

 

[furnace]

I see worms everywhere.

Dont see whats wrong with 40% tax.

I do.

It's not the millionaires it affects, it's the high earners who aren't millionaries it's completely unfair on. Someone's earning £150k/year, but has to pay £55,000 in tax - bringing their earnings down by more than a third?

That's one pound for every three you earn, going straight into the governments pocket. I honestly think that is totally disgusting.

 

[atpbx]

I do.

It's not the millionaires it affects, it's the high earners who aren't millionaries it's completely unfair on. Someone's earning £150k/year, but has to pay £55,000 in tax - bringing their earnings down by more than a third?

That's one pound for every three you earn, going straight into the governments pocket. I honestly think that is totally disgusting.

Welcome to the politics of envy.

 

[Munky1080]

I see worms everywhere.

Dont see whats wrong with 40% tax.

It's like this - People should work so that they can earn and improve their lives. Paying taxes that high make it very difficult to keep on improving your life.

If you want to pay taxes that high you can - you can overpay as much as you want.

 

[Muffin`]

Welcome to the politics of envy.

?

 

[chippie]

I assume you mean 40% - and it's that's the case...it's absolutely DISGRACEFUL! No one should ever have to pay 40% income tax!

No, I don't mean the 40% higher rate.

I mean what I said. The 10% starting rate still exists under certain circumstances. See http://www.hmrc.gov.uk/rates/it.htm

 

[atpbx]

?

Its the stuffing the "rich".
Just because someone earns more money doesnt mean the rate of tax they pay should be any higher.
You should pay a set rate throughout the whole range, why, just because say i get a promotion next year, should 40% of my pay rise go to the government?
What extra do i get for it?
Whats the point of me working harder?
There isnt any, i sit at 29,999 pounds and never progress.

 

[Killa_ken]

Basically, government steals your money and gives to scum bag chavs.

long live capitalism!