Why does the Gov always gives me problems

DXP55

DXP55

DXP55

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Joined
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Posts
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Location
Shropshire
I have just had my £10 xmas bonus from DWP -- The wife and I have had a sleepless night wondering what to do with it. She wants a cruise and I want a new Shotgun.
This was introduced around 1972/3 and if it had carried on with inflation it would be worth £140 - sort of RR money.

It won't even buy a large 24 pack of loo rolls from Lidl.

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For those that missed it I am being sarky
 
It would be funny if the £10 bouns took you over a tax bracket, allowance or benefit... lol
Say you was going to get £1000 pounds tax free allowance from bank interest and now you have to pay 40% tax on £500 of it. lol
 
DXP55 said:
I have just had my £10 xmas bonus from DWP -- The wife and I have had a sleepless night wondering what to do with it. She wants a cruise and I want a new Shotgun.
This was introduced around 1972/3 and if it had carried on with inflation it would be worth £140 - sort of RR money.

It won't even buy a large 24 pack of loo rolls from Lidl.

"

"


"


"


"

"



"



"

For those that missed it I am being sarky
Click to expand...
I found this

“Introduced in 72-73 but the amount has never changed.
If inflation proofed, it would've been £140+ by now.
Instead, we get a winter fuel payment as well.”
Click to expand...

Says you get a winter fuel payment instead of the £10 being increased
But of cause I have no idea how much the winter fuel payment was or if you did get it
 
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slinxy said:
It would be funny if the £10 bouns took you over a tax bracket, allowance or benefit... lol
Say you was going to get £1000 pounds tax free allowance from bank interest and now you have to pay 40% tax on £500 of it. lol
Click to expand...
That's not how tax works, you only pay the extra tax on anything earned IN that tax bracket, not the complete allowance / wage
 
wez130 said:
That's not how tax works, you only pay the extra tax on anything earned IN that tax bracket, not the complete allowance / wage
Click to expand...
That's how exactly tax works...
If the OP was on £50,270 before tax, it gives him a tax free allowance of £1000 pounds on interest from a savings account.
Once he gets the £10 pounds that places him into the 40% tax bracket, yes he will only pay 40% on the £10 pounds. But the amount of tax free interest from a savings account drops to £500 pounds, therefore they will have to pay 40% on amount above £500 pounds.

It wasn't much of a factor in the past when interest rates were low, but with the current interest rates from savings account, you only need 10,000 pounds in an account that pays 5% to get returns of £500 pounds.
 
Kelt said:
Put it towards your TV tax license.
Click to expand...

Good shout :-) I pay half (approx. £85/year) as I have blind status. What that really means is that I do have eyesight, but so little of it that I'm not road legal and sight in 1 eye only.

I started with attendance allowance, then it became DLA, then PIP. The Christmas bonus has always been £10.
 
At least you get a bonus the only one most are getting is increased fuel bills from january last week I had an email they're reducing my DD as I'm too much in credit now they'll probably want to put it up again to cover the increases
 
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slinxy said:
That's how exactly tax works...
If the OP was on £50,270 before tax, it gives him a tax free allowance of £1000 pounds on interest from a savings account.
Once he gets the £10 pounds that places him into the 40% tax bracket, yes he will only pay 40% on the £10 pounds. But the amount of tax free interest from a savings account drops to £500 pounds, therefore they will have to pay 40% on amount above £500 pounds.

It wasn't much of a factor in the past when interest rates were low, but with the current interest rates from savings account, you only need 10,000 pounds in an account that pays 5% to get returns of £500 pounds.
Click to expand...

You are correct in how that could work, except for one small detail in this instance, the £10 bonus isn't classed as taxable income :p
 
I will be OK Slinky - This is what I love about OCUK-- most people think everyone earns as much as themselves but in this case you can halve that £50k and still knock a good bit off it as well.
Also remember I also have to pay for fuel for heating and lighting but after working for 39yrs and 51 weeks I do get the fuel allowence which I can tell you is a god send.
We don't spend it like other pensioners as it goes straight into my oil suppliers account.

Chaparal.
I also found that link before I posted just to be sure.
:)
 
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