I take it this is a load of old rubbish ?

csm_2

I tried to google it to see which paper it was in coz i cant remember but cant find it but it said that if the change was made that the personal allowance to change to 10K news papers arent always the most reliable so the only way we will al know for sure is to wait until the budget

real1314

It's a fantasy.

Most taxpayers have an allowance of £6k ish. They pay 20% tax on the £4k between that and £10k. That's £800 per year.
29 million people x £800 = £23 billion.

If they just kept it to people earning less than £10k, then would they be taking £800 a year off the guy earning £10001.00?

If it's not one or the other then it's a whole load of work re-assessing numerous peoples taxable income?

A_Nice_Englishman

It was back in January

http://www.channel4.com/news/articles/business_money/tax%20allowance%20may%20rise%20to%2010000/2898597

https://www.express.co.uk/posts/view/78712/Tax-allowance-may-rise-to-163-10-000-

csm_2

A_Nice_Englishman wrote: »

It was back in January

thats basically what I read but only a couple of weeks ago, the paper i was reading must have been way behind. you never know then it could change within the next couple of years

AHAR

real1314 wrote: »

If they just kept it to people earning less than £10k, then would they be taking £800 a year off the guy earning £10001.00?

No, they'd take 20% of his taxable income from him - i.e. 20 pence.

ceridwen

Ah right...January though....whats that phrase "a week is a long time in politics" - so a lot coulda changed since then.

Certainly agree with this idea and hope it happens - PROVIDED they find some way to ensure that highly-paid people DONT end up benefitting from this as well.

Oldernotwiser

It would also be a good idea if it meant taking a lot of people (if not all) out of the tax credits system.

James123_2

bigheadxx wrote: »

It would have been better to have done this ten years ago rather than introducing the Tax Credits system which is hugely bureaucratic, expensive to administer and is nothing whatsoever to do with "tax crediting" but is effectively a benefit, ensuring that millions of people are dependant on the government for part of their income.

Couldn't agree more! Tax Credits is just an expensive way of employing more civil servants in Labour heartlands. Most people I know on TC deliberately manipulate their income to their own best advantage - and who can really blame them? There is little difference in take-home pay between £15k and £28k if you've a few children. It's always been a crazy system and is beset by fraud. YES, let people keep more of their own money. Scrapping TC would allow for this. It's crazy to take tax from someone for earning an amount (£6500 plus) which is blatantly insufficinent to keep body and soul together. If they could make Council Tax fairer too, then they'd definitely have my vote!

Golden_Anemone

"Most people I know on TC deliberately manipulate their income to their own best advantage"

Are all these people self-employed? Any tips on how this is possible for a PAYE employee would be gratefully received.