Today's Budget

Graham_Devon

A new £9,205 tax threshold (increase of £1,800) could be announced in todays budget. Would be very happy if it was, especially considering all those not seeing a pay rise may actually see this as an actual increase each month in income.

Good idea? Or just asking for more trouble?

ILW

It would be a step towards making work pay.

ukcarper

Tax allowance is due to increase by £630 this year giving standard rate taxpayer £10.50 a month. I would imagine the allowance of £9205 would take effect from next year.

PaulF81

I bet ol' Gids is planning something very special for the 2013 budget with the election in sight.

The question is, who are all these dumb people who will still vote Labour?

mjm3346

Graham_Devon wrote: »

A new £9,205 tax threshold (increase of £1,800) could be announced in todays budget. Would be very happy if it was, especially considering all those not seeing a pay rise may actually see this as an actual increase each month in income.

Good idea? Or just asking for more trouble?

Already going to £8105 this year, the £9205 will probably be the 2013/14 figure and then they can go to the £10,000 Libdems target the following year (2014/15).

It would be hard to justify the added cost of making a late change to all the codes issued for this year knowing the only reason for an additional increase now would be to deflect some attention from the top rate tax cuts they want to announce today.

abaxas

paulf81 wrote: »

i bet ol' gids is planning something very special for the 2013 budget with the election in sight.

The question is, who are all these greedy people who will still vote labour?

efa


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geordie28

mjm3346 wrote: »

Already going to £8105 this year, the £9205 will probably be the 2013/14 figure and then they can go to the £10,000 Libdems target the following year (2014/15).

It would be hard to justify the added cost of making a late change to all the codes issued for this year knowing the only reason for an additional increase now would be to deflect some attention from the top rate tax cuts they want to announce today.

political will comes first. the tax office would be a much better run place without all the last minute, short term decisions making everything worse. a coding uprate is easily done too. hmrc wouldnt need to issue loads of new codes. Just tell employers and pension companys to uprate all L codes by the new amount - this would cover the majority. much like the change from 5435 - 6035 midway through a tax year a couple of years ago.

Graham_Devon

mjm3346 wrote: »

Already going to £8105 this year, the £9205 will probably be the 2013/14 figure and then they can go to the £10,000 Libdems target the following year (2014/15).

It would be hard to justify the added cost of making a late change to all the codes issued for this year knowing the only reason for an additional increase now would be to deflect some attention from the top rate tax cuts they want to announce today.

Not too sure really, it reads like it could be done for 2012/13, using past tense for aprils change.

They also state "but not until next year" when it comes to the reduction from 50-45p tax.

Ministers lifted the tax threshold by £1,000 to £7,475 in April 2011, meaning the first £7,475 of people's income is not liable for tax.

A further £630 increase to £8,105 was due next month and while the coalition has pledged to ultimately raise the threshold to £10,000 by 2015, the Lib Dems have been pushing for "further and faster" action on what is regarded as a flagship policy.

spadoosh

My question is where is the government going to find the £300+ million to subsidise this every month over £3bn a year (in american terms think this is standard now though). Lets not sing and dance just yet.

mjm3346

Graham_Devon wrote: »

Not too sure really, it reads like it could be done for 2012/13, using past tense for aprils change.

They also state "but not until next year" when it comes to the reduction from 50-45p tax.

Maybe they will go for the big hit this year aim for £10,000 next year while announcing the higher rate cut for next year so they can say they are looking after the lower paid first and keep the Libdems happy as well.

StevieJ

The Libdems say this is a boon for the poorly paid but will the tax saving not just be offset by a reduction in working tax credit?