March Budget 2016

Caged · 16 Mar 2016 at 23:11

I think you're potentially looking at an increase in responsibilities vs. what it would do to your take home pay, deciding it's not worth it, and then blaming the tax rate.

When in reality the issue is "my employer isn't offering me enough extra for this increase in hassle". That's quite a different situation and while changing the tax rate may fix the problem if the two rates of pay happen to align nicely with a tax band, so would just upping the gross salary.

V F · 16 Mar 2016 at 23:19

Mr Jack said:
Tory disability campaigner quits in disgust over budget

MichelleHarper said:
I left the UK in 2008 and now live in Australia.

I have watched from a distance my birth country ( England) being torn apart to the analogy of ''finding a shilling in the lining of an old sofa''.

Is there anything left that these Tory scumbags wish to take? Oh yes, they will not be happy until the poor and disabled are all but dead and then they can pretend it all never happened.

I predict rioting on the streets of Britain and the people will speak from the hip.

There is no justice on Earth to justify the mass murder of citizens by budget. Disgusting scum the lot and one day each of these Tory murderers will reap what they have sown.

Myself having not had an 'easy' time whilst leaving the UK now have no regrets whatsoever, I truly do feel deeply about other people suffering to the beasts of politics.

Australia need look no further than the heart of Britain's society to see clearly where to AVOID making similar treacherous errors.

Australia is no utopia for it has it's own issues mulled by distance from Europe and most of the western World. Still tis not a place of political suffering for the want of the few.

Climbeth down from an ivory tower and think!

Neil79 · 16 Mar 2016 at 23:25

Is there anything left that these Tory scumbags wish to take? Oh yes, they will not be happy until the poor and disabled are all but dead and then they can pretend it all never happened.

Been saying that for ages now, even mentioned as such before the Conservatives came into power, that they'd screw the disabled and the poor. But most here didn't really care

V F · 16 Mar 2016 at 23:39

Neil79 said:
Been saying that for ages now, even mentioned as such before the Conservatives came into power, that they'd screw the disabled and the poor. But most here didn't really care

Reminds me of a lot of big name celebrities. Once some of them have had cancer or something very tragic in their life to even a dead son/daughter all of a sudden they start caring/campaigning setting up charities and foundations. Up until then, not a chance. Mostly.

Tunney · 16 Mar 2016 at 23:53

cheesyboy said:
The effective 60% (for me - I've got two kids) tax rate between £50k to £60k has actually impacted my recent career decisions.

Temporarily or permanently? You don't see that £50-60k job as a stepping stone to an even higher salary?

Destination · 17 Mar 2016 at 00:01

Is this saving on the disabled budget the same one we have an entire thread for?
A one pojnt change in one of the qualiflying criteria?
Or is it something else?

Destination · 17 Mar 2016 at 00:03

Tunney said:
Temporarily or permanently? You don't see that £50-60k job as a stepping stone to an even higher salary?

Issue is, work that extra half day and lose the child benefit, or don't work, have you partner work it, at a lower level and keeo the child benefit. It was one of those awful taxes that penalised those single income families, where mum stayed off work to raise the kids, no averages looked at.

Jono8 · 17 Mar 2016 at 01:18

I might not be understanding it as it is late and I need sleep but from April 2017, will you really be able to get an extra £1000 for every £4000 you put into one of these lifetime isa's every year until you are 40??

Tefal · 17 Mar 2016 at 01:41

I wouldnt tryst this life time isa.

First it will be 50...then it will be 60...then 67...and you'll never live to cash it out

Tefal · 17 Mar 2016 at 01:43

V F said:
...

Ahhh Australia government funded internment camps full of systematic rape, toruture and abuse.

Definitly champions of the poor.

EdGey · 17 Mar 2016 at 01:49

Tefal said:
I wouldnt tryst this life time isa.

First it will be 50...then it will be 60...then 67...and you'll never live to cash it out

You can cash it out within a year of opening it if you plan to buy your first house. I think that's the main point of it really though it does seem waaay too good to be true.

It's come a little late for me. I've near enough got my deposit now but I still might wait for it. Could always get that car first...

NO!

Excuse me.

Destination · 17 Mar 2016 at 07:14

The cash out time is age 60, before that there are large penalties.
It is basically designed as a pension top up, for those who have the money and might use it to escape from their working roles before stat retirement age, and use this isa to plug the gap.
4k made up to 5k each year between say 20 and 50, compounded at ven a low rate adds up nicely, 150/200k in a tax free pot to draw at 60. Fine if you have spare cash, fine if you are under 40.
Not good if you might need the money some time before sixty, and not great if you already have made a house purchase and won't use it as an advanced help to buy scheme.

Tefal · 17 Mar 2016 at 07:16

ahh yea

https://www.gov.uk/government/uploa...t_data/file/508117/Lifetime_ISA_explained.pdf

the cash out is 50 but the bonus stops being paid on anytuhing you save after 50

Destination · 17 Mar 2016 at 07:45

Tefal said:
ahh yea

https://www.gov.uk/government/uploa...t_data/file/508117/Lifetime_ISA_explained.pdf

the cash out is 50 but the bonus stops being paid on anytuhing you save after 50

Edited my original, the bonus is paid between 18 and 50, it can't be cashed until 60, if it is, you lose govt bonues, and interst on the govt bonus, and suffer a 5% charge.

What it will do, is allow banks to hold savings over a longer term, which might help them shore up various bits and pieces, transfer rules will be important, else they will stick minimal interest on these and leave them uncompetetive, making people think the govt top up is the way forward.

4k invested at 40, for 20 years until sixty, not in this isa, would have to achieve a rate of a 2% a year compounded to beat the govt top up of 1k, assuming next to no interest on the topupisa.
So the isa actual rates will be very important to see if this scheme is worth anything.

Azza · 17 Mar 2016 at 08:16

The good think about this Lifetime ISA is that you can use other investments in it and not just cash, so shares, funds, ITs, bonds and ETFs can all go in.

413x · 17 Mar 2016 at 08:20

Azza said:
The good think about this Lifetime ISA is that you can use other investments in it and not just cash, so shares, funds, ITs, bonds and ETFs can all go in.

Now that is really interesting really interesting. I'm going to have to properly look at this in detail

Azza · 17 Mar 2016 at 08:44

413x said:
Now that is really interesting really interesting. I'm going to have to properly look at this in detail

With the extra £££ it looks quite promising if you're not a home owner already, say you're 20 and could stick it away for 15 years in some low costs funds or ETFs to get an extra boost when you come to buy your house.

I wonder if you already have the £££ in a cash or S&S ISA you can drip feed it into the LISA to get the extra topup from the gov?

ron3003 · 17 Mar 2016 at 09:20

Tefal said:
I wouldnt tryst this life time isa.

First it will be 50...then it will be 60...then 67...and you'll never live to cash it out

Lets have a wild guess, I expect that by the time you under 40's can cashout all State Pensions will be means tested and you'd be over the limit

cheesyboy · 17 Mar 2016 at 09:53

Tunney said:
Temporarily or permanently? You don't see that £50-60k job as a stepping stone to an even higher salary?

Yes and no

I have a realistic opportunity to double my pay in the next 4-6 years if I stay put, or I can get a 20-25% pay rise by moving jobs now. Moving jobs now puts me into 60% tax, which reduces the short-term payoff, and doesn't guarantee me a shot at the big (ish) bucks that I have at my current company.

If the short-term gain was higher, like if the tax rate wasn't so unreasonable, I would have cut and run already.

And it's not just about the actual cash lost (about 1/3rd of take-home in that bracket is lost due to the child-benefit clawback), it's a real emotional wrench to see such a huge deduction, and it makes salary sacrificing into a pension, or anything to avoid paying it, seem so much more sensible. Which also reduces my take-home pay and impacts upon lifestyle.

Destination · 17 Mar 2016 at 10:25

From 2018 small businesses will be required to submit quarterly updates to a digital tax account held by HMRC. Those businesses will be able to volunteer to pay their tax as pay-as-you-go amounts, set by the business itself.

What is the definition of a small business, is this an LTD, or do all self employed sole traders fall under this definition?
Assume it'll mean quarterly trips to the accountant for me instead of annually?