Will I be paying more Income Tax next year?

Harami_2

Hello everyone,

I'm new on these forums, and I sincerely hope something can answer my question. I'd contact Inland Revenue myself, but it's a national rate number.

I've read that year 2016/17 the tax allowance will be increasing from £10,600 to £10,800 which, means we'll be paying less tax, right?

However, when I verify this by using some of these tax calculators that have been put up after the UK Budget 2015 was announced it suggests I'll be £977 worse off.

My annual salary is £19659, 32 years of age, married, 1 child, and spouse does not work.

Can, someone please shed some light on this. I'm confused. :undecided

beecher2

There are changes to tax credits, probably be because of this.

Harami_2

beecher2 wrote: »

There are changes to tax credits, probably be because of this.

Sorry, I don't understand.

PasturesNew

You will pay less tax. Benefits will probably be decreased. This is supposed to encourage employers to pay better wages so you might get a pay rise by then.

Harami_2

@PasturesNew.

Thanks for replying. When, I key in my information on these UK Budget 2015 calculators it says, I'll be £977 worse off which, suggests I'll be paying more?

xylophone

Do you mean that you'll pay less tax but receive less in tax credits?

zagfles

Do you claim tax credits?

Harami_2

Hi,

Sorry, I think I'm getting confused.

To clarify, I'm not interested in Tax Credits, but only concerned with whether I'll pay or less Income Tax in 2016/17.

sammyjammy

But the calculator you have used has taken the tax credits into account. You will not pay more income tax next year if your income remains the same. Does that answer your question?

Harami_2

sammyjammy wrote: »

But the calculator you have used has taken the tax credits into account. You will not pay more income tax next year if your income remains the same. Does that answer your question?

Yes, it does.

Than you.

blondebubbles, thanks to you too.

xylophone

The personal allowance is going from £10,600 to £11,000 which means you will pay £80 less tax.

Not until 17-18? https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413970/TIIN_4168_income_tax_personal_allowances_and_basic_rate_limit.pdf