2% Drop in Income tax (all a con) and NI

Serco_is_crap

The best thing to do if you are not assesed under PAYE is to set up a limited comnpany - OK Brown XXXX is going to increase the small company rate to 20%, with careful planning you can avoid/restrict NI payments and claim milegae to and form your deemed place of work aswell as costs such as Laptops etc.

Only a proper Conservative Government will reduce taxation and still increase personal allowances each year as well as make most of the people living in the South East exempt from paying IHT.

WHA

Tirian wrote: »

I've done up a nice little graph to show how much better or worse off you will be under the new income tax regime, according to your income. I haven't included over £35,000 which is where the upper tax threshold, cause frankly if you earn that much then you can bloody well ask your accountant to work it out for you

Does that include the NIC increase in the £30k plus area?

nickj_2

did gordon really expect that we'd forgive him for all the tax he's had off us over the last 10 years and we'd welcome him to take over from tone

krisskross

I am a pensioner with total gross income of approx £11K. The majority from an occupational pension. I shall be paying an extra £100 a year at least in addition to the £1100 tax I already pay. I fear the council tax bill so much.

What on earth is a Labour chancellor doing taxing pensioners to such a degree? I wish I had never paid into a pension scheme or saved a penny during my working life. I would actually be better off.

malcindebt

Something no-one has mentioned yet is the fact that the Personal Allowance for 08/09 has not been set yet. This could be where the 10% band is taken up. Seems we will have to wait until November to see what the real efect will be.

pubtricks

Nice graph,

I made a few tool for the same, it has tax changes and NI changes until 2010.

http://www.binaryincome.com/ukbudget.php

It shows a similar picture, great if you earn a lot and not that great for low earners in 2010!

David

humfer

God this is all confusing!! The following is what I think will happen with the NI contributions. Please correct me if I am wrong in places (most likely:rotfl: )

2007-2008
UEL 34840, so 34840-5225 (personal allowance) = 11% on £29615
Anything above £29615 at 1%
2008-2009
UEL 38740 (extra £67 a week) - 5225 (will no doubt go up, but same as 07/08 for simplication) = 11% on £33515. Anything above this at 1%

Now I think I'm more confused than ever...:mad: Think thats an extra £3900 of earnings that will have 11% charged against it instead of 1%

moonrakerz

krisskross wrote: »

What on earth is a Labour chancellor doing taxing pensioners to such a degree?

He is doing what all Labour chancellors have done, but you must admit this man has dreamt up the most imaginative ways possible. His aim to make more and more people dependent on state handouts, tax credits, etc, etc, etc.
Why ? so that those people then HAVE to vote Labour to try and maintain any standard of living..

exil

That graph ignores tax credits which are also changing. I also think it doesn't take into account either increased tax allowances or the NI changes. Mind you I'm not volunteering to draw one that does!

In effect people on tax credits (above the basic CTC rate) will find that what they lose on the 10 pc tax band they will gain in increased tax credits. More or less. People on the 40-50k mark lose out on NI but above that the 2% tax cut starts to kick in in earnest.

Basically it's a tidying up exercise. And since well off people come off best it means GB can distance himself from the Robin Hood image the right wing press have saddled him with.

Tirian

It's based on the £5225 allowance, since that's the best I have to go on at the moment. It doesn't include NI, as I knocked it together quickly at the end of work today. That said, it may actually be useful for work so I may be able to justify spending the time tomorrow morning to factor in the NI.

Personally, I'm disgusted by it - I'll be better off for it, but I fundamentally disagree with grabbing extra tax from the the lowest paid people in the country.

I'm not impressed by the raising of the working tax credit threshold, as we've already seen what a fiasco the tax credit system can create, getting thousands of people into debt because of adminstrative errors and insensitive collection of the ensuing arrears.