MSE News: The Budget 2011: What the massive tax shake up means for you

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

Read the full story:
Budget 2011: What the massive tax shake-up means

savingwannabe

Funny how public sector workers are paying for banking mistakes by the private sector!

John_Pierpoint

savingwannabe wrote: »

Funny how public sector workers are paying for banking mistakes by the private sector!

..............and who employed the people at the FSA, who must have been asleep at their desks?

..............and which section of society has been hit the worst by the lowest interest rates in history?

..............and which people have benefited the most from from those low interest rates?

..............and which section of society just might be able to sell to foreigners & reduce the UK's massive trade deficit?

..............and which section of society just might make enough profit to pay enough tax to narrow the fiscal deficit?

.............and why does it take almost double the percentage of GDP to administer the country than it did 50 years ago?

.............and which forum has a ghetto section variously described at "doom and gloom" and "the nutters" that saw most of what was coming?

Possibility

Winners - The Government, Losers - The UK Population

Petrol

The reduction of 1p per litre fuel duty was just created to attempt to fool the population into thinking that the Government was actually attempting to act on the seriously overpriced fuel costs; when in fact it will not make a difference with the other plans that specifically target the Oil companies. The proposed plans highlight an increase in tax for oil companies which will obviously reduce their profit margins; and anybody would understand that this will more than likely result in them raising their prices even more. Therefore, the decrease would not make a difference and could actually result in members of the UK paying even more for petrol. As petrol is considered as being inelastic, the demand is always going to be there, so oil companies would be able to charge as much as they wanted.

Income Tax / National Insurance

Fair play, there is going to be a reduction on income tax next year which will mean that many people will be able to afford more; due to having higher incomes (which I am in favour of). However, with the continuing increase in unemployment, is it really likely that it will bring such a positive effect? Although businesses would have more money as a result of having to pay less National Insurance for their workers, the costs of distribution are likely to be so much higher that, again I believe it would cancel out the benefits for businesses.

First Time Buyers

I am pleased with this addition, because due to UK banks in the past lending money to people who weren't able to pay it back; it is very difficult for people to actually get the funds needed to buy property. However, it is only applicable to 10,000 people, which is a very little portion of the population. I acknowledge that money needs to be spent in moderation; in order to tackle the deficit; but with the unemployment rate increasing; would it not have been more beneficial to create more jobs?

Alcohol and Cigarettes

I think the massive increase in these is unjust, and I think if it was going to happen it should have been introduced over time. I believe all smokers are extremely unhappy with this, and personally I believe that it was unfair that the rise on cigarettes occured so much more quickly than alcohol. I am in favour of the increase in spirits because it offers a high percentage of alcohol content, but I was shocked that it is set to happen at such a high rate.

Also I thought it was appropriate to add that there is such a high likelihood that the UK is going to go into a double dip recession. Although the figures are not published for a while yet, it does not take an expert to realise that the GDP figures for Q4 2010 (i.e. a contraction of 0.6%), has likely continued. If you think about it, the increase in VAT in January, the rise in unemployment, and the rise of inflation; they all seem to suggest a continuation of negative growth.

AirlieBird

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.

Errr... no. Another poorly researched and inaccurate news story from MSE. All income tax allowances and thresholds will increase with RPI until at least the next election. The personal allowance will increase by at least RPI until it reaches £10,000.

Mikeyorks

AirlieBird wrote: »

The personal allowance will increase by at least RPI until it reaches £10,000.

I let you go first this time! But I'll put on the bit from HMRC :-

Legislation will be introduced in Finance Bill 2012 to set the personal allowance for those aged under 65 at £8,105 and the basic rate limit at £34,370. All other income tax, personal allowances and limits that are subject to indexation will be increased in line with the retail prices index.

themull1

Possibility wrote: »

Winners - The Government, Losers - The UK Population

Petrol

The reduction of 1p per litre fuel duty was just created to attempt to fool the population into thinking that the Government was actually attempting to act on the seriously overpriced fuel costs; when in fact it will not make a difference with the other plans that specifically target the Oil companies. The proposed plans highlight an increase in tax for oil companies which will obviously reduce their profit margins; and anybody would understand that this will more than likely result in them raising their prices even more. Therefore, the decrease would not make a difference and could actually result in members of the UK paying even more for petrol. As petrol is considered as being inelastic, the demand is always going to be there, so oil companies would be able to charge as much as they wanted.

Income Tax / National Insurance

Fair play, there is going to be a reduction on income tax next year which will mean that many people will be able to afford more; due to having higher incomes (which I am in favour of). However, with the continuing increase in unemployment, is it really likely that it will bring such a positive effect? Although businesses would have more money as a result of having to pay less National Insurance for their workers, the costs of distribution are likely to be so much higher that, again I believe it would cancel out the benefits for businesses.

First Time Buyers

I am pleased with this addition, because due to UK banks in the past lending money to people who weren't able to pay it back; it is very difficult for people to actually get the funds needed to buy property. However, it is only applicable to 10,000 people, which is a very little portion of the population. I acknowledge that money needs to be spent in moderation; in order to tackle the deficit; but with the unemployment rate increasing; would it not have been more beneficial to create more jobs?

Alcohol and Cigarettes

I think the massive increase in these is unjust, and I think if it was going to happen it should have been introduced over time. I believe all smokers are extremely unhappy with this, and personally I believe that it was unfair that the rise on cigarettes occured so much more quickly than alcohol. I am in favour of the increase in spirits because it offers a high percentage of alcohol content, but I was shocked that it is set to happen at such a high rate.

Also I thought it was appropriate to add that there is such a high likelihood that the UK is going to go into a double dip recession. Although the figures are not published for a while yet, it does not take an expert to realise that the GDP figures for Q4 2010 (i.e. a contraction of 0.6%), has likely continued. If you think about it, the increase in VAT in January, the rise in unemployment, and the rise of inflation; they all seem to suggest a continuation of negative growth.

I dont mind the alcohol and cigarette prices because people can choose to smoke and drink, i'm more interested in the tax etc that we cant choose over.

John_Pierpoint

AirlieBird wrote: »

Errr... no. Another poorly researched and inaccurate news story from MSE. All income tax allowances and thresholds will increase with RPI until at least the next election. The personal allowance will increase by at least RPI until it reaches £10,000.

This occurs alongside the switch to using
the CPI as the basis for indexation for the employee and
self-employed national insurance thresholds from 2012-13. 550,000
individuals will have an average loss of £48 a year

Capital gains tax annual exempt amounts — From April 2012 the consumer
prices index (CPI) will be used as the default indexation assumption for capital gains
tax (CGT) annual exempt amount. Legislation will be introduced in Finance Bill 2012 to
uprate the CGT annual exempt amount in line with rises in the CPI instead of the retail
prices index. The first year to be affected will be 2012-13.

Mikeyorks

I think, John, you missed the crucial bit of the quote relating to 'Income Tax, personal allowances and limits'.

NI and CGT indexation is switching to CPI ....... IT indexation remains RPI. Just to keep things sensible!

tr3mor

savingwannabe wrote: »

Funny how public sector workers are paying for banking mistakes by the private sector!

Without the bankers, Gordon wouldn't have been able to afford his massive public sector in the first place.

:money:

jony35

tr3mor wrote: »

Without the bankers, Gordon wouldn't have been able to afford his massive public sector in the first place.

:money:

Don't think the blame game is going to resolve anything:beer:
I work in the public sector , no pay rise in past 4 years , pension watered down , No career advancement . But like most people in the job we accept it and understand we all need to reduce public spending.

Only way we will ever do this is to address the nanny state culture , Take a look though council jobs and you see a scary amount of support workers and social workers there at a great cost. Not to mention middle management and the chattering classes.How did we survive before this culture?

Need to rebuild the family unit and strong community's in order to ease the burden, not multiculturalism aligned with a divided society .
Will never compete in the world market with these overheads.And belive me its not long before the developing country's have the skills and knowledge to move in and undercut the industry's that have supported us for the past 10 years.

The land owners and landlords and monopoly's and hand shakes make it impossible for the country to lower the minimum wage and try to compete in manufacturing and production and other sectors again.The housing market needs to be overhauled and bring back down to earth. Rents and mortgages all reduced, builds for necessity not profit.


Mean while our governments fights 3 wars in our name and the papers spread there propaganda and fear .And we sit and blame each sedated in our current state of comfort and take our eye of the ball.

And what do budgets like this achieve ? Nothing i think its just a magic trick .Need real radical reform and massive investment in business if we are to avoid the coming storms .


Well break time rant over , back to work ))))
L