Budget 2007 Doubling of Tax for Those on Low Incomes

George-Derek

Like a lot of people who have been medically retired I have to get by on a small pension (plus incapacity benefit).

As a result of the budget's abolition of the 10% tax band I will see my tax bill double from April 2008 .

I was wondering what do about this and decided on the following....

I created an ePetition on the number 10 website (my first one).

It can be found at...

http://petitions.pm.gov.uk/Budget-10p-Band

Scroll down the ePetition page for further details.

I hope to get some signatures.

I've also asked my local MP to write to Gordon Brown (they know each other quite well so I hope the message will get through).

All we can do is complain and hope that we are heard.

tanith

Hi I have signed your petition......... I find myself in the same position as yourself, and I along with many others I suspect had no idea this would affect me... I guess I should have though

seven-day-weekend

My husband and myself have both signed. He is in a similar position to yourself. I am a non tax-payer at the moment.

molly_mandy_2

On the Cutting Tax board there are also two petitions to sign, under the thread (dated 2nd April) ''save the 10% tax band''

Sign everywhere ...... who knows, every petition might help.

:EasterBun

wotsthat

As a result of the budget's abolition of the 10% tax band I will see my tax bill double from April 2008 .

You seem to be saying that £215 i.e. 10% x £2150 will double your tax liability i.e. you will be £4.12 per week worse off. I'm not saying that this isn't significant for those on a low income but you need to look at changes in the tax allowances as these improve the situation a little. (Personal allowances for 2008/09 haven't been announced so you don't have all the figures required to claim a doubling of tax)

If you are under 65 the increase in the personal allowances will help to mitigate some of this (not much as they are generally inflation linked)

However if you are over 65 Gordon has been much more generous increasing the personal allowances. In fact by 2010 all pensioners with a similar income to you will be non-taxpayers.

I won't be signing because I think you'll find, overall, you'll be better off.

EdInvestor

Wotsthat is quite right, it's too early to say: pensionsers will be significantly better off and we won't know about those under 65 until we see next years' personal allowances.

derrick

EdInvestor wrote: »

Wotsthat is quite right, it's too early to say: pensionsers will be significantly better off and we won't know about those under 65 until we see next years' personal allowances.

But the personal allowance would go up anyway,(or should do), so that equation is irrelevant, the tax bill for low earners WILL double due to the abolishing of the 10% band.

wotsthat

But the personal allowance would go up anyway,(or should do), so that equation is irrelevant, the tax bill for low earners WILL double due to the abolishing of the 10% band.

Income tax will double for those who have, exactly, a taxable income of £2150 - anyone who is working over 16 hours a week and has children will be better off.

Also any income over this will be taxed at 20% instead of 22%.

Doubling of income tax sounds very exciting but the overall effect in pounds and pence is probably going to be negligible.

the chances are that the chancellor will not address this potential injustice in the 88/9 tax year

I know Gordon gets a rough time but we really can't blame him for potential injustices which may occur in 2088. ;-)

Keith1946

I think not. all people earning between £5405 (2008/09) allowance and £18,800 will pay more Tax, this may be counteracted by Tax or Pension credits if they are applicable to your individual circumstances. This has been confirmed by discussions with my local Tax office.
My Income will drop by £193.47 per. year, this may not sound much, but why should low income earners pay extra tax to compensate those earning more.

ATF101

Dress it up anyway you like, its additional tax for lower income groups.

jennifernil

I have signed. Up till now I have not come into tax, but next year I might. So for me it will be twice as much tax.