Tax Credits

Thrugelmir

setmefree2 wrote: »

Businesses will have to pass the extra costs of salary rises on as price increases - let's be honest we could do with a bit of inflation at the moment in the UK - so it's probably quite a good time to switch away from tax credits to a higher minimum wage.

Only if customers are happy to pay the new prices. A lost customer may never return. Productivity is the key to real wage rises.

Mistermeaner

without an increase in output productivity comes from having less employees - see france

Mistermeaner

wotsthat wrote: »

Getting the same thing for less or nothing is an example I hope my kids have picked from me and the teachings of Martin :money:

I think there is a difference between being frugal and the morality around playing the tax/benefits system to advantage yourself, particularly when you don't 'need' the benefits.

Agreed system needs fixing and Michaels isn't breaking the law - but that doesn't make it moral.

gadgetmind

France has got real problems as it's just not a great place to hire people. We have offices in 25 countries, but we do not, and will never, have one in France.

gadgetmind

Mistermeaner wrote: »

Agreed system needs fixing and Michaels isn't breaking the law - but that doesn't make it moral.

There are a lot of people who wouldn't qualify for as many benefits as they do due to their pension contributions, and all would be paying more tax without them.

Morals are a moveable feast, so let's fix the system rather than criticising those who are playing by the current rules.

WannaBLoaded

I don't think upping the minimum wage will help all that much, i think prices have gotten out of control.

We'll need higher wages and lower prices, won't happen!

gadgetmind

Prices for many things *have* been going down, but nowadays people want better things and more things.

lisyloo

Agreed system needs fixing and Michaels isn't breaking the law - but that doesn't make it moral.

Where do you draw the line?
Is it ok to use salary sacrifice into your pension as an employee?
Is it ok to do it when self-employed?
Ok to do it to gain benefits?

Where do you draw the line on your morals?
And whose to say yours are better than mine or michaels?

Agree with gadgetmind that no person is obliged to organise their affairs to pay more tax and it's the system that needs fixing.

lisyloo

i think prices have gotten out of control.

Really? Inflation is negative. Which prices are out of control?
Presumably not those that make up the CPI or RPI baskets and are used to show inflation.

Mistermeaner

lisyloo wrote: »

Where do you draw the line?
Is it ok to use salary sacrifice into your pension as an employee?
Is it ok to do it when self-employed?
Ok to do it to gain benefits?

Where do you draw the line on your morals?
And whose to say yours are better than mine or michaels?

Agree with gadgetmind that no person is obliged to organise their affairs to pay more tax and it's the system that needs fixing.

difference between paying into pension to minimise tax (on way in, you still pay on way out) and paying into pension in order to maximise a benefits claim (benefits intended for those on low incomes)