Mimimum wage and tax

short_cake

i wondered what people thought of this idea put forward recently but an MP http://lakelandradio.co.uk/2012/09/farron-calls-for-minimum-wage-workers-to-be-tax-exempt/

as a worker on minimum wage myself im gonna agree but i also say having ajob minimum wage is better than being on the dole as its much better then being on "the dole"
wondering why those like myself who dont/claim claim anything are still penalised by paying tax

paddedjohn

What an idiot, how would that work with say bloke 1 working 30 hrs on £10 per hour paying tax but bloke 2 working 50 hours on £6.20 per hour doesnt pay tax. The idiot is just headline hunting. why not a £12k threshold for all.

CKhalvashi

paddedjohn wrote: »

What an idiot, how would that work with say bloke 1 working 30 hrs on £10 per hour paying tax but bloke 2 working 50 hours on £6.20 per hour doesnt pay tax. The idiot is just headline hunting. why not a £12k threshold for all.

I'm in agreement with this.

I pay myself less than minimum wage (£8105 this year), but overall end up a lot better off than minimum wage, especially as the bulk of my PAYE income is from work with no set hours, the rest is purely company profit.

The bottom line is that under that system, on around £250k/year of pre-tax earnings, I can fiddle paying nothing?! I'm up for saving £100k/year!

CK

paddedjohn

Just realised he does say exemption for anyone earning less than £12k but cant see why the minimum wage needs to be mentioned.
Just a thought though, if this plan became reality then where would the shortfall come from?

Evilm

paddedjohn wrote: »

Just realised he does say exemption for anyone earning less than £12k but cant see why the minimum wage needs to be mentioned.
Just a thought though, if this plan became reality then where would the shortfall come from?

Because he assumes there is very few out there that earn under £12k that are on a higher wage and working only part time. Which is a wrong assumption!

As for the shortfall... He's a policitian, right now it comes from the lands of farts and unicorns and he can look wonderful for suggesting this move without having to back it up with financial figures and proof he could make up the difference. Actually trying to put it into play and there will probably be another increase in a stealth tax or in a business tax.

System

I like his idea. It would mean my service pension wouldn't be taxed as BR - an extra couple of £k a year

YoungBusinessman

£12k tax free would have been good idea. £1k a month into your pocket and noone can touch it. 40% tax does my head in and iv only been on it a year!

Paying more than £300 a week in tax its only going to increase.