MSE News: Budget 2011: Income tax to fall next year but rise in future

edited 23 March 2011 at 3:04PM in Cutting Tax
20 replies 2.5K views
2»

Replies

  • Regardless, greed breeds greed and something has to be done about this.
  • relaxtwotribesrelaxtwotribes Forumite
    335 Posts
    Part of the Furniture 100 Posts Combo Breaker
    ✭✭
    When base rate rises and your mortgage rate goes up, too, you will have less disposable income, but all those depositors will get more interest on their savings and have more disposable income. So, by your bizarre reckoning that will force prices back down.
  • When base rate rises and your mortgage rate goes up, too, you will have less disposable income, but all those depositors will get more interest on their savings and have more disposable income. So, by your bizarre reckoning that will force prices back down.


    Yes, savings, not spends.
  • edited 24 March 2011 at 2:24PM
    John_PierpointJohn_Pierpoint Forumite
    8.4K Posts
    Part of the Furniture 1,000 Posts
    ✭✭✭✭
    edited 24 March 2011 at 2:24PM
    A lot of the savers will be pensioners and they will be desperate for more money to spend.

    They probably don't understand that even if they are getting 5% gross and 4% net they really need to put in another 1% a year to maintain the value of their savings when inflation is 5%
  • True! However inflation is not individual. More people need to buy better as there is still plenty of choice around. If you buy a choclate bar at £50p every day from shop A, but shop B sells 7 for £1.89. Which do you buy? Obvious I know, but the point i'm making is that Shop A is over inflating their price, and there are still too many people who moan about prices doing things like this. Now times this choclate bar by thousands of other products & their lies the problem. I still think prices at source are reasonable, but the world is full of greed! The more the consumer becomes frugal, the better we will all be.

    Bit off topic I know.
  • MikeyorksMikeyorks Forumite
    10.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭✭
    MSE News: Budget 2011: Income tax to fall next year but rise in future

    Chancellor George Osborne said today that he will cut income tax in a year by increasing the personal allowance but he will implement an effective tax hike from then on.
    .......

    But the good news is tempered by the announcement that from April 2012, many income tax thresholds will rise every year in line with the Consumer Prices Index inflation measure which tends to be lower than the current Retail Price Index measure that is used for rises.
    The upshot is that allowances will rise more slowly which is an effective tax rise as less of your income will be tax-free or in a lower band.

    In which case how is income tax 'falling next year'? As the £630 rise in personal allowances is considerably less than the £1000 given this year. 'Which is in effect' an increase of £74 in tax ........... using the same distorted logic?

    I swear these 'News' items are getting more desperate.
    If you want to test the depth of the water .........don't use both feet !
  • ManAtHomeManAtHome Forumite
    8.5K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    The £1000 increase is next year, £630 the year after (taxidermally speaking)...
  • ManAtHome wrote: »
    The £1000 increase is next year, £630 the year after (taxidermally speaking)...

    the £100 increase is this year, APRIL 2011. The standard tax code will be 747
  • MikeyorksMikeyorks Forumite
    10.4K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭✭
    ManAtHome wrote: »
    The £1000 increase is next year, £630 the year after (taxidermally speaking)...

    Precisely. So that is an increase in tax of (£1000 - £630 = £370 @ 20% =) £74 in 2012-13 .......... if one follows the logic in the News item?
    If you want to test the depth of the water .........don't use both feet !
  • ManAtHomeManAtHome Forumite
    8.5K Posts
    Part of the Furniture Combo Breaker
    ✭✭✭✭
    the £100 increase is this year, APRIL 2011. The standard tax code will be 747
    2011/12 tax year hasn't started yet...
This discussion has been closed.
Latest MSE News and Guides

Card providers to reserve up to £100

When you pay at supermarket fuel pumps

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals