Tax drop

Guv · 3 Mar 2008 at 20:53

Haircut said:
Also, a point to note is that they're moving the boundary for 11% NI from about £31K at the moment to match the point at which 40% tax applies.
So, if you earn between ~£31K-£40K you will likely be paying less income tax, but more NI.

Yep, quite interesting that someone earning £40k a year will save about £500 a year in tax but pay about £490 more in NI, so not much difference.

Energize · 3 Mar 2008 at 21:22

I can't believe they are taxing the worst off people even more, shocking.

Rotty · 3 Mar 2008 at 22:27

Mad old tory said:
Nice of a labour government to hit the worst off like that

Headline grabbing of the worst kind frankly.

the worst hit are people in the 40% tax band

[TW]Fox · 3 Mar 2008 at 22:30

This does kinda suck a bit - as I work part time becuase I'm a student it means I will basically pay double the tax I currently do, as everything I am taxed on is @ 10%.

GSXRMovistar · 3 Mar 2008 at 22:31

Rotty said:
the worst hit are people in the 40% tax band

Oh joy now there's a surprise!

Rotty · 3 Mar 2008 at 22:33

GSXRMovistar said:
Oh joy now there's a surprise!

same as always, work hard, do a bit better for yourself and we will kick you back down, middle earners have been crucified by recent governments

R.O.S.S.I · 3 Mar 2008 at 22:49

God my pitiful part time job wage will become even more pitiful.

Jonnycoupe · 3 Mar 2008 at 22:50

Rotty said:
the worst hit are people in the 40% tax band

I might be missing something here but I thought they would be better off, the increase in NI is less than the reduction in tax due to the higher tax threshold.

Ie. for every £1 that your now giving 11p instead of 1p for NI the tax is 20p rather than 40p

31p rather deduction rather than 41, and now that its later in the earning scale that you jump up to 41% why would you be worse off?

Scuzi · 3 Mar 2008 at 22:51

Rotty said:
same as always, work hard, do a bit better for yourself and we will kick you back down, middle earners have been crucified by recent governments

That's Labour government for you. Reward the losers and punish the winners.

Cyanide · 3 Mar 2008 at 22:57

When does the 40% band come into play with the new figures?

DB_SamX · 3 Mar 2008 at 22:59

Calculation editing in progress...may repost tomorrow.

Scuzi · 3 Mar 2008 at 22:59

Cyanide said:
When does the 40% band come into play with the new figures?

It was above £39k. Not sure if it has changed though.

Cyanide · 3 Mar 2008 at 23:00

Scuzi said:
It was above £39k. Not sure if it has changed though.

Makes it almost pointless me doing overtime then

Scuzi · 3 Mar 2008 at 23:03

Cyanide said:
Makes it almost pointless me doing overtime then

Whyso? You only pay 40% on anything over £39k that you earn, everything else below is 20%.

Jez · 3 Mar 2008 at 23:03

DB_SamX said:
....................90

Wrong personal allowances, pre budget is 5225, post budget will be 5435

DB_SamX · 3 Mar 2008 at 23:06

Jez said:
Wrong personal allowances, pre budget is 5225, post budget will be 5435

Doh! I did that calculation 11 months ago; will amend.

Cyanide · 3 Mar 2008 at 23:07

Scuzi said:
Whyso? You only pay 40% on anything over £39k that you earn, everything else below is 20%.

Because I'm not slaving away doing overtime when I'm going to be losing 40% of it after the first month or 2

Energize · 3 Mar 2008 at 23:15

Cyanide said:
Because I'm not slaving away doing overtime when I'm going to be losing 40% of it after the first month or 2

And don't forget NI!

Cyanide · 3 Mar 2008 at 23:20

Energize said:
And don't forget NI!

*grumbles about the horrendous tax in this country*

I'll just stick with my basic wage, no point working myself to death for the overtime if I'm barely going to see half of it

GarethDW · 4 Mar 2008 at 00:46

Scuzi said:
How about they change the 40% to 20% as well. That sounds fair to me.

I'd vote for you, if you stood for Parliament and proposed this.