MSE News: The great tax overhaul - are you a winner or loser?

Former_MSE_Guy

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

"Today marks the start of the new financial year, and with it, an overhaul of the tax system ..."

Read the full story:
The great tax overhaul: are you a winner or loser?

Johnecon

It is strange that for every £10,000 p.a. increase in income from £10,000 to £100,000 the taxpayer loses £100 p.a. except that between £40,000 and £50,000 he/she loses £239. Also the NI threshold could have been more closely aligned with the income tax threshold by making it £7,488 (I realise that it has to be an exact number of pounds per week). The NI upper limit is well aligned with the beginning of the 40% income tax band. We now have effective tax rates of 0, 32, 42 and 52% with a tiny band at 12% (i.e. NI only).

tr3mor

Middle and higher income earners will be significantly worse off...

Is that all those middle income earners with incomes over £44k?

:rotfl:

Percy1983

Anybody else nptice the typo:

"Consumer Prices Index (RPI) inflation now, not the Retail Price Index (RPI) measure."

Interest change in taxes, as I don't claim any benefits I won't feel any pinch there.

John_Pierpoint

Johnecon wrote: »

It is strange that for every £10,000 p.a. increase in income from £10,000 to £100,000 the taxpayer loses £100 p.a. except that between £40,000 and £50,000 he/she loses £239. Also the NI threshold could have been more closely aligned with the income tax threshold by making it £7,488 (I realise that it has to be an exact number of pounds per week). The NI upper limit is well aligned with the beginning of the 40% income tax band. We now have effective tax rates of 0, 32, 42 and 52% with a tiny band at 12% (i.e. NI only).

Don;t forget that those receiving dividends from companies and oeics and investment trusts etc. get a nasty increase in tax as they go over the 40% threshold:

http://www.hmrc.gov.uk/taxon/uk.htm

Gorgeous_George

Pay rise below inflation or no pay rise.

Increased pension contributions for a weaker pension.

VAT at 20%.

You can stick your personal tax allowance where the monkey gets its nut Gideon Osborne.

GG