New higher tax bracket

investing

Just looking at the Budget 2011/2012 and it appears that I'll be a few hundred quid out of pocket a year with the new changes in lowering the 40% income threshold down to £35,000

Don't you guys see this as being pretty unfair?

With the increase in VAT, reduction in public services... it's really making the UK a lot harder to live in!

ceeforcat

You are not that much worse off - your Personal Allowance has gone up by almost the same amount as the higher rate threshold has been reduced.

investing

Yes I am worse off, the lowering of the higher tax bracket exceeds the change in personal tax allowance.

ceeforcat

Yes - Sorry - you are worse off but by only £80 per year by my calculations. Some are a lot more affected.

investing

Weird, according to the calculators it's about £200-£300.

Which is quite a lot since that's a nice new LCD tele per year, or nearly my mobile phone bill a year.

About half of an new iphone 4 which is something I would LOVE to have

ceeforcat

Ah - if you take into account the NIC changes, you will indeed be much worse off as it rises to 12%. Middle income being squeezed to death it would appear.

investing

ceeforcat: I love your definition of 'middle income'

In my opinion, circa £45-£50k pa is somewhat middle income, especially in London but according to the taxman, the govt - it's considered high.

System

investing wrote: »

Just looking at the Budget 2011/2012 and it appears that I'll be a few hundred quid out of pocket a year with the new changes in lowering the 40% income threshold down to £35,000

Don't you guys see this as being pretty unfair?

Everyone has to contribute to the recovery, so I do not see this as unfair. (The child benefit thing is unfair for those impacted tho.)

Can you pay more into a pension to bring you back below the higher rate threshold ?

lazer

investing wrote: »

Just looking at the Budget 2011/2012 and it appears that I'll be a few hundred quid out of pocket a year with the new changes in lowering the 40% income threshold down to £35,000

Don't you guys see this as being pretty unfair?

With the increase in VAT, reduction in public services... it's really making the UK a lot harder to live in!

Don't be silly - the public's attitude now seems to be the "rich" are cash cows for the government.
After all - welfare payments are increasing according to inflation, but income is decreasing for the wealthy, so the gap between the 2 extremes is narrowing.

Some see this as fair as they believe that people shouldn't be wealthy, this seems to be the opinion of the majority at the minute - that the rich should shoulder the responsibilty of cutting the deficit.

What is often forgotten is that, in the majority of cases, those people in the higher tax brackets, have worked and studied very hard to get there, often working 60 hours plus a week, especially at the beginning of their careers. Also those earning more are already contributing more, even if they paid paid tax at the same percentage as everyone else.

Personally i'm in favour of a flat rate tax rate, together with an increase in the Personal Allowance.

I am not a higher rate tax payer, but I believe this country does not reward the worker enough. Paying 50% of earnings in tax is not an incentive to do extra work - overtime, promotion etc.

investing

lazer wrote: »

Don't be silly - the public's attitude now seems to be the "rich" are cash cows for the government.
After all - welfare payments are increasing according to inflation, but income is decreasing for the wealthy, so the gap between the 2 extremes is narrowing.

Some see this as fair as they believe that people shouldn't be wealthy, this seems to be the opinion of the majority at the minute - that the rich should shoulder the responsibilty of cutting the deficit.

What is often forgotten is that, in the majority of cases, those people in the higher tax brackets, have worked and studied very hard to get there, often working 60 hours plus a week, especially at the beginning of their careers. Also those earning more are already contributing more, even if they paid paid tax at the same percentage as everyone else.

Personally i'm in favour of a flat rate tax rate, together with an increase in the Personal Allowance.

I am not a higher rate tax payer, but I believe this country does not reward the worker enough. Paying 50% of earnings in tax is not an incentive to do extra work - overtime, promotion etc.

Not to mention that the 'wealthy' are likely to consume less of the govt resources as they are more likely to consume less govt resources since they are likely to have private health care etc.

I can not nor will not benefit from the recovery since I am only here for the next year or so, mainly due to the increase in taxes - I'm likely to take my expertise to Australia.

sunshinetours

investing wrote: »

Not to mention that the 'wealthy' are likely to consume less of the govt resources as they are more likely to consume less govt resources since they are likely to have private health care etc.

I can not nor will not benefit from the recovery since I am only here for the next year or so, mainly due to the increase in taxes - I'm likely to take my expertise to Australia.

Hope you have researched Oz well - grass is not always greener

How would you solve the defecit issue?

Did you benefit from the UK education system, school, college, uni before you got your job - just wondered?