New Tax Year 2009/10 Discussion

sharnad

drkofglos wrote: »

It states in the newsletter

National insurance upper earnings UP. Now you will pay 11% NI on earnings up to £43,888 a year (£40,040) and 1% on everything after that.

Is the 1% a typo ?

No its not a typo

pfantasmes

ladymacbeth_uk wrote: »

Hello,
Great news about the bost to income. Can we expect to see this in our April pay or can companies take their time e.g May or even June so long as they back-date? I get paid on the 23rd of ech month.

Thanks

You should get the increases in your 1st pay after 6th April. If a company does take longer (which they should not as companies have know about these new rates for a long time) it will have to be back dated.

scottmcgarvey

The "catch" was there in the Inland Revenue when I first started there in 1988...

As far as I know, has never been taken away.

colinfw

Could you clarify how the savings interest is calculated. Is it actual interest received after 20% deducted tax or some revenue determined interest rate. What about ISA interest, is this interest taken into account when applying the rules.
Thanks
Colin

Mikeyorks

It's the gross taxable interest. So it excludes ISAs .... but is the gross interest received on your taxable accounts.

ncm

When does the 65-70 Tax allowance start

* Beginning of the tax year in which your 65th Birthday occurs

* From the actual date of your Birthday

* The tax year following your 65th Birthday

boobbby

ncm wrote: »

When does the 65-70 Tax allowance start

* Beginning of the tax year in which your 65th Birthday occurs

* From the actual date of your Birthday

* The tax year following your 65th Birthday

It starts from the 5th April if you are 64 in the proceeding tax year. i.e. if you are 64 on the 3 April you get the higher allowance from the 5th April. If you are 64 on the 6th April or later you will not get the higher allowance until the beginning of the next tax year !! (earning may reduce the higher allowance)

wg.taylor

kenpitfield wrote: »

Don't forget that the additional personal allowance for over 65's is effectively means tested. If you have a total income, including interest on savings, in excess of £22,900 per annum, the additional personal allowance is reduced by £1 for every £2 above this excess, effectively taxing pensioners @ 30%. I don't think this is fair and it doesn't seem to be widely understood.

I pointed this out last year in correspondence with my tax office, saying that it was double taxation to have net interest (ie what was left after having already paid income tax) taken into account to reduce my over 65 personal allowance. The reply was terse!

southcoastexpress

The Revenue(HMRC) are tjhe people who operate settled policy on Personal Allowances ;they don't decide it.The politicians are the people who decide the rules so it is to your MP and the Chancellor that you should be addressing your point of view.Tnat way you and others can bring influence to bear and hopefully lead to a change in policy to correct mean tricks /injustices like this one.

meandher_2

Am I right in thinking that a retired couple get £9,490 allowance each. If so and our income is all Joint income would we between us therefore be allowed £18,980 tax free income.