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Do You Think Income Tax Banding is Fair?
Comments
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Depends where you live surely. I'd say supporting a family of 4 on £42k in London or most of the SE is breadline stuff. The typical mortgage payments alone would be a huge chunk of your take-home pay. Assuming reasonable provision was being put by for the cost of those kids during their teens etc I think £42k would be a massive struggle.
My salary is around there.
Mortgage - £700
Utilities + Insurance + Ground Rent - £125
Train - £322
Food & Essentials - £125
Car - £150 (Tax, MOT, Insurance and Petrol)
TV/BB/Phone - £70
Leaves me around £600 a month to support 3 other people (inc. 1 adult).
But then again if I was supporting 3 other people my mortgage payments would be a higher (currently living in a 2 bed flat, so not really suitable) and higher travel costs (kids to school).
Oh and my only entertainment would be sitting on the sofa watching TV and playing games in that budget, pretty depressing!0 -
Yeah I think that example sums it up pretty well. And theres items it's easy to not factor in like car parking (there's only one car park within reach of my local station & it's £1300/year to park there.....)0
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My salary is around there.
Mortgage - £700
Utilities + Insurance + Ground Rent - £125
Train - £322
Food & Essentials - £125
Car - £150 (Tax, MOT, Insurance and Petrol)
TV/BB/Phone - £70
Leaves me around £600 a month to support 3 other people (inc. 1 adult).
But then again if I was supporting 3 other people my mortgage payments would be a higher (currently living in a 2 bed flat, so not really suitable) and higher travel costs (kids to school).
Oh and my only entertainment would be sitting on the sofa watching TV and playing games in that budget, pretty depressing!
Your food/cleaning/groceries and energy costs would certainly be impacted big time. Not to mention clothes, shoes, school uniforms etc etc."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
guruchelles wrote: »In tax year 2013-14 personal allowance (for most people) will be £9440.
The 20% tax rate will apply to earnings up to £32010.
The higher rate of 40% will apply to earnings from £32011, plus the PA, which is £41450.
And if you're lucky enough to earn over £150000 you'll pay 45% tax on those earnings.
Is this, in your opinion, fair? Should the jump be from 20% to 40%? Should the 40% threshold have come down? Should the personal allowance have gone up?
Interested to hear opinions.
Why doesn't the govt just stick an extra 5p on NI if most of the population don't see it as 'tax'.
From about 6k? you start paying 12%, once you reach 9k it is then 32% and from 41k it goes to 42%.
How is this for a suggestion - everyone should be paid their gross slary and then have to pay the tax (NI or whatever you want to call it) each month as we do with council tax - I suspect it might help to concentrate minds on what were priorities when it came to public spending...I think....0 -
My salary is around there.
Mortgage - £700
Utilities + Insurance + Ground Rent - £125
Train - £322
Food & Essentials - £125
Car - £150 (Tax, MOT, Insurance and Petrol)
TV/BB/Phone - £70
Leaves me around £600 a month to support 3 other people (inc. 1 adult).
But then again if I was supporting 3 other people my mortgage payments would be a higher (currently living in a 2 bed flat, so not really suitable) and higher travel costs (kids to school).
Oh and my only entertainment would be sitting on the sofa watching TV and playing games in that budget, pretty depressing!
Those figures total up to £1492 someone earning £42k would take home over £2500 so that leaves almost £1000 not £600 . I think a lot of people would manage ok on £600 a month after those expenses let alone £1000.0 -
Those figures total up to £1492 someone earning £42k would take home over £2500 so that leaves almost £1000 not £600 . I think a lot of people would manage ok on £600 a month after those expenses let alone £1000.
Apologies, I decided to also do the sensible thing and pay into a pension. I guess I shouldn't do that.
I don't think a lot of people would manage on £600 to pay for 3 other people.
edit - I am on lower than £42k but not by a lot. After pension and tax my take home is £2180. So -£1500 leaves me with the £680.0 -
Apologies, I decided to also do the sensible thing and pay into a pension. I guess I shouldn't do that.
I don't think a lot of people would manage on £600 to pay for 3 other people.
edit - I am on lower than £42k but not by a lot. After pension and tax my take home is £2150. So -£1500 leaves me with the £650.
What would that go on don't forget they would also have £250 a month child benefit.0 -
guruchelles wrote: »Should the jump be from 20% to 40%?
If you also consider national insurance, the jump is from 32% to 42% which is nowhere near as much as jump as if you look at income tax in isolation.0 -
Apologies, I decided to also do the sensible thing and pay into a pension. I guess I shouldn't do that.
Nice try to dismiss his point but he's absolutely right. Your take home pay is, effectively, the same as mine, and I pay into a pension and am paying off a student loan and don't pay higher rate tax so it's hardly unreasonable to question your statement when it didn't add up.
So as the person earning £42k would have around £1k left over (based on your example) and would be getting child benefit the situation isn't as dire as your flawed example implies.Having a signature removed for mentioning the removal of a previous signature. Blackwhite bellyfeel double plus good...0 -
Just to get things in perspective nearly 80% of people working full time in the south east earn less that £42k in fact 50% earn less that £30k.
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