MSE News: Budget 2012: Personal tax allowance to rise

thelawnet

AirlieBird wrote: »

I don't.

I don't need to. I calculated them for myself thanks.

EDIT: I downloaded your spreadsheet. I don't know where you got your inflation figure from but its not right. If it's CPI it should be 2.6%, if it's RPI 3%.

It should be CPI , according to official rules, and the figure is correct.

http://www.bbc.co.uk/news/business-17442343

A change in income is irrelevant. The figures show what somebody earning £x in 2013-14 would gain/lose from this single measure compared with what they would have paid in IT/NICs in 2013-14 without the measure.

If you want to show year-on-year changes then fine, you have a very reasonable case for increasing incomes but that isn't what my/HMRCs figures are showing.

Ok, but hypothetical scenarios comparing tax rules that have never been used are not terribly useful to anyone.

The most relevant scenario is what people will pay this year compared with next year.

You're the one who said my figures were wrong, btw, not the other way round!

meggsy

... and this according to the IFS ...

http://www.citywire.co.uk/money/ifs-young-families-not-pensioners-bear-the-brunt-of-coalition-cuts/a576840?re=18370&ea=191533&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily

Andy_Davies

Rollinghome wrote: »

Unfortunately, whereas the standard personal allowance will go up for those under 65, for those over 65 it won't. So with inflation you will pay more tax in real terms. The age allowance will stay at £10500 so after a couple of years or so it will be the same as the standard allowance and have gone completely.

A bit unfair when savings are already being eroded in value due to inflation but below inflation rates of interest are being taxed as if they were gains, which in real terms they aren't.

But why should someone get a higher personal allowance just because they are older?