New Car Tax Rules..... Scam?

motorguy

Joe_Horner wrote: »

No it's not. People in tis situation are almost invariably also in receipt of some housing benefit, council tax benefit and (possibly) tax credits.

All of these are recalculated if their take-home pay changes. In the case of housing and council tax benefit, they "lose" 85 pence for every £1 their pay increases - 60p housing benefit and 25p council tax.

So, with the current NMW of £6.50 per hour, a person working 30 hours / week (the level they've pledged to take out of income tax - not even full time!) will have gross pay of £10140. Wit the new imporoved NMW from October, that will rise to £10452.

With a personal allowance of £10600 for 2015, they're already outside tax. So that's a completely meaningless pledge - literally nothing but feel-good electioneering soundbites.

For a person on 40 hours at the "new" rate of £6.70, their gross pay will be £13936 and they'll pay tax on £1336 of that. At a 20% basic rate, they will pay £267.20 tax each year, or £5.14 per week. After NI contributions as well, their take home pay will be £240.75 per week.

Assuming the "best" case of a single person, no disabilities or other enhanced allowances, in a one bedroom privately rented flat @ £120 per week (typical for this area, your area may vary), they will receive £25.39 per week housing benefit towards their rent

But if the pledge to remove NMW workers from tax was extended to cover them, which would save them £5.14 per week, their housing benefit will be reduced by 60% of that so their real gain will be £2.06 per week.

For most cases, where there are partners or children involved, there will also be council tax benefit involved and the total reduction will be 85%, giving a net increase of 77 pence per week.

That's how out of touch people who really believe these measures are helpful are - it's nothing but smoke and mirrors, and I for one don't believe for a second that the government don't know that!

Incidentally, my partner and I aren't in this situation, but we're well aware of how many people are and we'd rather be paying a little more ourselves than have people subjected to this sort of life in a supposedly modern society!

IF they'e on this amount of money
AND they're claiming other benefits
AND they have to get those recalculated
AND
AND
AND
AND
AND

You really do go out of your way to be offended dont you? :eek:

In fact, its not even affecting you and you're offended.

motorguy

Joe_Horner wrote: »

giving a net increase of 77 pence per week.

There we go! Result!

77p * 52 = £40 a year!

More than covers the £5 or so that these friends of yours with these really acute set of circumstances find themselves in when they have to pay for 1/2 a months tax on the car they HAD to change and it only cost £500 because its all they could afford, and theres no buses and they're on minimum wage, and their car broke down unexpectedly in the middle of the month and they were too poor to repair it and they had to change it because they needed to get to the NMW job on Monday morning and previously they could have found a private seller who would have let them take the extra tax for free and they live that remotely that they cant afford to drive to tescos for cheap groceries and its not really you and your wife because you're on better jobs than that and you can drive to tescos but its some family nearby really, honest that you feel offended for.

Result!

Win Win then! £40 extra per year and "only" £5 extra in road tax! :beer:

:T

Joe_Horner

motorguy wrote: »

IF they'e on this amount of money
AND they're claiming other benefits
AND they have to get those recalculated
AND
AND
AND
AND
AND

You really do go out of your way to be offended dont you? :eek:

In fact, its not even affecting you and you're offended.

That is NOt a "long chain" as you seem to like to think. That is the FACT of affording to live at the NMW end of the scale.

As for minding about things that don't affect me, perhaps that's something to do with an old army concept - the "jack b*st$rd" - someone who ignores the welfare of others as long as he's ok. I believe it comes from "I'm all right, Jack" stemming from the 1959 comedy of the same name.

It was not a badge of honour but society now seems to be full of them, and even lauds them. Interestingly, the film was a satire on the attitudes of trades unions, which many of the people now showing the exact same attitude openly disapprove of.

Funny old world!

motorguy

Joe_Horner wrote: »

That is NOt a "long chain" as you seem to like to think. That is the FACT of affording to live at the NMW end of the scale.

And has already been said, its probably 1 of about 100 things that could be done to help people in these situations and probably very close to the bottom of the list of things that will make a difference for them.

Joe_Horner wrote: »

As for minding about things that don't affect me, perhaps that's something to do with an old army concept - the "jack b*st$rd" - someone who ignores the welfare of others as long as he's ok. I believe it comes from "I'm all right, Jack" stemming from the 1959 comedy of the same name.

I fully support looking after others, however i dont think if you were to ask 1000 people on NMW is this in their top 100 problems i think there would be a resounding NO. I dont really think there are too many who sit at nights and think "if only i could reclaim the full months tax when i sell my car, i could make ends meet'

Do you? Really?