Fear of tax, who else has stopped spending?

JonnyBravo

Graham_Devon wrote: »

However, you now get 40% tax on £34,600 at TODAYS wage. This has bought a LOT more people into paying the 40% tax than there would ever have been paying the 60% tax in 1988.

Just to clarify it was £34,800 in 08-09 but it is £37,400 in 09-10. ie now.

You're quite right about the proportion of people paying this though of course.

baileysbattlebus

[QUOTE=Graham_Devon;20899649
Standard tax may have been 30% in 1988, but what was the threshold?[/QUOTE]

tax threshold in 1988

personal allowance £2425

But the lower rate of tax in 1987/8 was 27% not 30%

payable on incomes of up to £17k

then you had different rates of tax,
40% between £17k & £20k
45% between £20k & £25k
50% between £25k & £33k
55% between £33k & £41k
60% over £41k

The 25/40% rates came in 1988/90.

ETA Average earnings for 1988 were £220 per week.

Cleaver

ad9898 wrote: »

I read somewhere, that we would need 8p on income tax between now and 2016 to pay for the bailouts alone, nevermind the other stuff the government has wasted money on, and it isn't even over yet.

Or the banks could become profitable again and would re-pay all the bailout money.

Dithering_Dad

I earn £60k and have just done the 'budget calculator' on the BBC website. I'm £600 better off. Good old Labour!!! They get my vote

lostinrates

Dithering_Dad wrote: »

I earn £60k and have just done the 'budget calculator' on the BBC website. I'm £600 better off. Good old Labour!!! They get my vote

OK, prompted by this I did too. DH will be better off, apparently..by not very much but a meal out. I'll be worse off.

Dithering_Dad

lostinrates wrote: »

OK, prompted by this I did too. DH will be better off, apparently..by not very much but a meal out. I'll be worse off.

That's cos you earn over £150k, lir. You toffs are going to learn the value of money now! :mad:

lostinrates

Dithering_Dad wrote: »

That's cos you earn over £150k, lir. You toffs are going to learn the value of money now! :mad:

Indeed. And with next years pay increase DH will save.....even more.

BBC calculator did say DH should be getting tax credits though. So now I suppose I ought to find out what they are...does one apply or is it dealt with through PAYE? Is it moral to claim them?

Dithering_Dad

lostinrates wrote: »

Indeed. And with next years pay increase DH will save.....even more.

BBC calculator did say DH should be getting tax credits though. So now I suppose I ought to find out what they are...does one apply or is it dealt with through PAYE? Is it moral to claim them?

I think they're claimed thru a website or something. I view them as a tax rebate. They're for parents so put the money away for your kid's Uni savings. That's where our Child Benefit payments go.

lostinrates

Dithering_Dad wrote: »

I think they're claimed thru a website or something. I view them as a tax rebate. They're for parents so put the money away for your kid's Uni savings. That's where our Child Benefit payments go.

Oh. no kids,...it mustn't be relevant to us after all

In fact, that might wipe out what DH is meant to be saving.....

PasturesNew

I just looked at the BBC Calculator.

A single person, driving 10 miles each way to work in a small car using unleaded petrol, earning £15k/year. Not drinking at all, not smoking, no flights. No other income/no savings. Would be £12 worse off per year.