40% tax threshold lowered?

nic_santorini

Sometimes I think others think that £43k is loads and yes it is, but everything is sometimes relative. My mortgage is x4 that of my school friends (I bought my first house at 31years old) and she bought hers at 18 years old. I earn x3 more than her but our expendable income is the same - so when these tax hikes come in - it really does affect the £43k earners just as much and believe me - her house is bigger than mine too!! I just feel it is take take take at the moment - when is it going to end?? It is so horrendous, people are so worried about their jobs too, its horrible.

zagfles

CLAPTON wrote: »

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

Not till 2013.

Anyone seen the technical details on how they're going to do this? From what I've read they aren't going to stop the child benefit claims, they're going to use the tax system to reclaim it somehow. But how would this work with independant taxation? The previous lot considered something similar ie taxing child benefit but backtracked when it was pointed out that you can't tax someone on someone else's income (even their spouse).

The whole idea is hair-brained, I wouldn't be surprised to see it dropped.