40% tax threshold lowered?

CLAPTON

apcorbett wrote: »

If you think that a household with one earner, totalling £43k a year gross is rich, then you are sadly mistaken, especially, as next door could be a family with two earners, totalling £80k between them, who would get the benefit.

Fairness?

I was explaining the politicians thinking about the situation and not giving my personal opinion

CLAPTON

*Rainbow*Warrior* wrote: »

I do remember that stuff about high earners not getting child benefit, but never for a minute thought it would apply to us, so didn't pay that much attention. Also, I thought (in my innocence) that you had to earn over 40k before you had to pay tax at 40%. I mean, totally apart from this £42475 cut off that people are mentioning. I thought it was a blanket thing and as long as you earn less than 40k it didn't affect you. Actually, now I think about it, I have a feeling the 40k limit actually relates to the criteria for tax credit.

To be honest, and I know this will sound stupid and terrible, I've become so sick of politicians using TV airtime to just spout whatever they want to and not actually answer the questions asked I tend to just change channel when they come on as they annoy me so much!

the rules doesn't come in until 2012

as others have siad the 40% nband for 2011 will be 42,475

one assumes although it's not entirely clear that if your OH pays any pension contributions theses will come off his salary too

*Rainbow*Warrior*

apcorbett wrote: »

If you think that a household with one earner, totalling £43k a year gross is rich, then you are sadly mistaken, especially, as next door could be a family with two earners, totalling £80k between them, who would get the benefit.

Fairness?

No, I agree with you completely! I think it would be much fairer to look at the total income for the household. Yet another example of governments not really being in touch with the real world - and I don't limit that comment just to the current government!

However, someone earning 43k is rich (well, sort of) in comparison to me!

Mentally I am thinking only of my husband's income as I expect to be made redundant in the next few months - and given how long it took me to find the job I'm currently in, I suspect I might not walk into a new job particularly easily.

EDIT: Just noticed that comment about 'rich' was directed to Clapton, not me. Sorry. However, for the record, I understood what Clapton meant, I do recall the announcement about rich people not getting child benefit - and thought it sounded fair until I realised they were talking about 40k per person and not per household.

apcorbett

CLAPTON wrote: »

I was explaining the politicians thinking about the situation and not giving my personal opinion

Fair enough!

tuggy12

>>>>>>>Rainbow Warrior

Don't forget NIC's are going up 1% from April 2011, so on your OH's salary that going to be about a further £24 per month deduction.

*Rainbow*Warrior*

Thanks - still not as bad as I was originally thinking!!!

chrisbur

tuggy12 wrote: »

>>>>>>>Rainbow Warrior

Don't forget NIC's are going up 1% from April 2011, so on your OH's salary that going to be about a further £24 per month deduction.

I don't think that you took into account the increase in the earnings threshold from £110 to £136 per week. When this is factored in my rough calculation gives an increase in NI of about £11 a month on £35400 per annum. This is more than made up for by the increase in the personal allowance on tax.

noh

tuggy12 wrote: »

>>>>>>>Rainbow Warrior

Don't forget NIC's are going up 1% from April 2011, so on your OH's salary that going to be about a further £24 per month deduction.

That figure is not correct. I make it an increase of £9.65 per month.

Whilst it is correct that the rate is going up 1% next financial year the Primary threshold is increasing from £110 to £136 a week. So the amount of salary that is subject to employees NICs is less.
http://www.hmrc.gov.uk/rates/nic.htm

tuggy12

chrisbur wrote: »

I don't think that you took into account the increase in the earnings threshold from £110 to £136 per week. When this is factored in my rough calculation gives an increase in NI of about £11 a month on £35400 per annum. This is more than made up for by the increase in the personal allowance on tax.

Quite right, I missed that. Thanks for correcting that.

laticsforlife

Theres been a fair amount said about someone earning £43,000 being 'rich'. Whilst in salary terms this is a good wage, you mustn't forget what those earning this amount do not get;

Tax credits
EMA
Child Benefit (shortly)
Free dental
free prescriptions
large student loan grants (non repayable)

So a 'middle class' worker is hardly rich these days.