New Energy Price Guarantee impact on State Pension increase 2023?

double_dutchy

Grumpy_chap said:

Was that one of her promises?

No, apparently it was one of a list of possible tax cutting measures provided by Nadhim Zahawi for Liz Truss' consideration.

https://inews.co.uk/news/politics/liz-truss-considers-cutting-taxes-for-top-10-of-earners-by-raising-tax-threshold-to-80000-1832740

Grumpy_chap

double_dutchy said:

Grumpy_chap said:

Was that one of her promises?

No, apparently it was one of a list of possible tax cutting measures provided by Nadhim Zahawi for Liz Truss' consideration.

https://inews.co.uk/news/politics/liz-truss-considers-cutting-taxes-for-top-10-of-earners-by-raising-tax-threshold-to-80000-1832740

If that happened, there could be a high number of those that currently Salary Sacrifice to pension to avoid higher rate tax and HICBIC that would review that and take higher salary now if the cost is reduced to basic rate tax.  I wonder whether the Treasury Officials will have assessed that as part of predicting the cost of such a change?  

GunJack

Grumpy_chap said:

double_dutchy said:

Grumpy_chap said:

Was that one of her promises?

No, apparently it was one of a list of possible tax cutting measures provided by Nadhim Zahawi for Liz Truss' consideration.

https://inews.co.uk/news/politics/liz-truss-considers-cutting-taxes-for-top-10-of-earners-by-raising-tax-threshold-to-80000-1832740

If that happened, there could be a high number of those that currently Salary Sacrifice to pension to avoid higher rate tax and HICBIC that would review that and take higher salary now if the cost is reduced to basic rate tax.  I wonder whether the Treasury Officials will have assessed that as part of predicting the cost of such a change?  

I'd imagine the Treasury bods will, but the politicians?? Now that's a stretch!!!

Aretnap

Grumpy_chap said:

NedS said:

Grumpy_chap said:

MX5huggy said:

higher rate tax  Liz has her back with her proposal to raise the threshold to £80k. 

Has that been announced?

No, not yet.

Thanks.
Was that one of her promises?

It was already one of Boris Johnson's promises during the 2019 Tory leadership election.

https://www.guardian.com/politics/2019/jun/10/boris-johnson-promise-tax-cut-raise-40p-threshold

Obviously it was dropped the moment he won the leadership race and his career no longer depended on votes from a handful of rich people in golf clubs. It never appeared in the manifesto for the general election later that year (rightly, as it's terrible policy).

It's likely that many of whatever promises were made during this leadership election will go the same way due to the realities of governing and the need to appeal to the public at large rather than party members, though Truss does seem rather more ideological than Johnson...

Grumpy_chap

GunJack said:

Grumpy_chap said:

double_dutchy said:

Grumpy_chap said:

Was that one of her promises?

No, apparently it was one of a list of possible tax cutting measures provided by Nadhim Zahawi for Liz Truss' consideration.

https://inews.co.uk/news/politics/liz-truss-considers-cutting-taxes-for-top-10-of-earners-by-raising-tax-threshold-to-80000-1832740

If that happened, there could be a high number of those that currently Salary Sacrifice to pension to avoid higher rate tax and HICBIC that would review that and take higher salary now if the cost is reduced to basic rate tax.  I wonder whether the Treasury Officials will have assessed that as part of predicting the cost of such a change?  

I'd imagine the Treasury bods will, but the politicians?? Now that's a stretch!!!

I have just been trying to look to see if the impact of this type of activity can be seen in data.  It might be expected that there'd be a flat line in number of earners between £50k and £60k (avoiding the 40% introduction and HICBIC) and another flat line in number of earners in the band above £100k (avoiding the withdrawal of personal allowance). 

If anything, the £100k impact might be more pronounced as everyone passing the threshold is impacted by the personal allowance withdrawal whereas HICBIC only impacts some of those passing through £50k plus those at £100k are more likely to have the services of an Accountant so fewer would miss the opportunity through being simply unaware.

As I understand it, individuals opting to SS also distorts the annual salary figures / average income as the amount that has been given over to SS pension is not recorded as earnings / income.  Depending upon the magnitude to which this type of practice actually takes place, this could well be a case where raising the tax threshold truly increases tax take (in the short term).