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MSE News: Budget 2015: Personal tax allowance to rise
Former_MSE_Helen
Posts: 2,382 Forumite
in Cutting tax
The majority of people will get a small tax cut over the next few years, under new changes to the personal allowance...
Read the full story:
Budget 2015: Personal tax allowance to rise
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Budget 2015: Personal tax allowance to rise
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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I'm not sure how much I agree with these constant above inflation increases in the starting rate of tax. I'm happy to be £10 a month better off, and happy that the high rate tax threshold is being raised, as that's been neglected for too long.
But I'm not a fan of the sentiment of trying to have more and more people not paying tax altogether. People should feel like they are contributing to the tax take of the country. I think it's important to increase engagement - for people to feel like they are paying for the police and the NHS, and would therefore want to have a say how taxes are spent.
At least it's not as bad as some other parties' ambitions of having the starting rate of tax set at a level where people on minimum wage wouldn't pay any tax. I think that could be a recipe for an appalling level of disenfranchisement.0 -
I think most people would feel that they are contributing through VAT, Excise Duty, Petrol Duty, NI and other charges and taxes, even if they are below the Income Tax threshold.0
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I am confused! This tax year (2014-2015), my personal tax allowance was reduced to the basic £10,000 as my gov't pension plus occ. pension came to more than £27,000. This year(2015-2016) the tax coding notice gives me the full £10600. I queried this and was told it was correct. I asked if the system had changed and was told no. In that case, am I paying too much tax this year?0
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I am confused! This tax year (2014-2015), my personal tax allowance was reduced to the basic £10,000 as my gov't pension plus occ. pension came to more than £27,000. This year(2015-2016) the tax coding notice gives me the full £10600. I queried this and was told it was correct. I asked if the system had changed and was told no.
It has changed or to be more precise is changing. Your higher personal allowance of £10500 has been frozen for the last couple of years. It would be reduced as you were over the income limit down to the basic.
Now that this year's basic is higher than what you were getting you will get that with no need to look at income limits any more.In that case, am I paying too much tax this year?
No it's correct for this tax year.0 -
I'm not sure how much I agree with these constant above inflation increases in the starting rate of tax. I'm happy to be £10 a month better off, and happy that the high rate tax threshold is being raised, as that's been neglected for too long.
But I'm not a fan of the sentiment of trying to have more and more people not paying tax altogether. People should feel like they are contributing to the tax take of the country. I think it's important to increase engagement - for people to feel like they are paying for the police and the NHS, and would therefore want to have a say how taxes are spent.
At least it's not as bad as some other parties' ambitions of having the starting rate of tax set at a level where people on minimum wage wouldn't pay any tax. I think that could be a recipe for an appalling level of disenfranchisement.
i totally agree with you - id take it a step further though - i think its a disgrace that vast swathes of the workforce don't pay any income tax!
Whats the term the parties use? - "released from the burden" of income tax - i bet they don't want to be 'released from the burden' of healthcare and pensions though (which they should be!)
In 20 years from now all these folk on the national median wage will be complaining about their pensions - claiming "I've worked all my life, paid my taxes..." - but actually they'll have paid very little - they'll actually expect more back than they paid in! a disgrace and as usual, the middle earner will be expected to pay for it.0 -
I'm not sure how much I agree with these constant above inflation increases in the starting rate of tax. I'm happy to be £10 a month better off, and happy that the high rate tax threshold is being raised, as that's been neglected for too long.
But I'm not a fan of the sentiment of trying to have more and more people not paying tax altogether. People should feel like they are contributing to the tax take of the country. I think it's important to increase engagement - for people to feel like they are paying for the police and the NHS, and would therefore want to have a say how taxes are spent.
At least it's not as bad as some other parties' ambitions of having the starting rate of tax set at a level where people on minimum wage wouldn't pay any tax. I think that could be a recipe for an appalling level of disenfranchisement.
Police are paid for via council tax as well as income tax. Taking people out of tax is a way of incentivising work, rather than incentivising laziness through WTCs etc, so I'm all for it. The knock-on effect will be that WTCs can be dumped at some time in the future due to growing incomes at the lower end of the scale due to income tax and NI exemption. Sensible policy IMO. :T0 -
i totally agree with you - id take it a step further though - i think its a disgrace that vast swathes of the workforce don't pay any income tax!
Whats the term the parties use? - "released from the burden" of income tax - i bet they don't want to be 'released from the burden' of healthcare and pensions though (which they should be!)
In 20 years from now all these folk on the national median wage will be complaining about their pensions - claiming "I've worked all my life, paid my taxes..." - but actually they'll have paid very little - they'll actually expect more back than they paid in! a disgrace and as usual, the middle earner will be expected to pay for it.
You say this as though it is the fault of those on low pay that this Government is choosing to use this policy to grab at headlines.
The fact is that businesses are forcing the Government into this policy as the alternative is to increase the NMW, which is the one thing that businesses will fight tooth and nail to prevent.
My opinion is that the tax allowance should be closer to £15k AND the NMW should be closer to £8.50 an hour. That would provide a significant incentive and would finally make work pay. It would also give those people who keep the flow of money moving around the economy that little bit extra to spend, improving the economy even further which has the knock on benefits of creating jobs, improving investment returns. It would also give more people on low incomes the ability to save or pay down debts etc.[SIZE=-1]To equate judgement and wisdom with occupation is at best . . . insulting.
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You say this as though it is the fault of those on low pay that this Government is choosing to use this policy to grab at headlines.
The fact is that businesses are forcing the Government into this policy as the alternative is to increase the NMW, which is the one thing that businesses will fight tooth and nail to prevent.
My opinion is that the tax allowance should be closer to £15k AND the NMW should be closer to £8.50 an hour. That would provide a significant incentive and would finally make work pay. It would also give those people who keep the flow of money moving around the economy that little bit extra to spend, improving the economy even further which has the knock on benefits of creating jobs, improving investment returns. It would also give more people on low incomes the ability to save or pay down debts etc.
don't even start me on the NMW - it needs to be scrapped entirely, or set to a more realistic figure - £1 or £2 an hour.
all the minimum wage do is remove any aspirations for an entire class of people - why bother trying to get qualifications an apprenticeship or get a trade if you can just get a shelf stacking job for the same pay? - its disgraceful.
all for raising the tax allowance - as long by taking it, they opt out of other services - healthcare and pensions are good examples.0 -
Yes, that's why it's bad, because it removes aspirations. Not at all because it forces employers to pay an amount that's a little closer to the living wage.don't even start me on the NMW - it needs to be scrapped entirely, or set to a more realistic figure - £1 or £2 an hour.
all the minimum wage do is remove any aspirations for an entire class of people - why bother trying to get qualifications an apprenticeship or get a trade if you can just get a shelf stacking job for the same pay? - its disgraceful.
You are an absolutely despicable human being.
Remember: if you're on minimum wage, your employer is basically saying "I would pay you less if I could get away with it"0 -
I am looking forward to the Scottish gov replacing council tax with a 5% income tax, paying 1% of what I am currently paying seems like a bargain to me, I will not feel at all disenfranchised I can assure you
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