How much more tax?

RobM99

Another "back-door" tax - think back to when a savings rate was 0.5%, you'd need £200,000 in savings to use the £1,000 tax-free allowance.  Now 5% is possible so 'only' £20,000 is needed. Time to see if a cash ISA is a good idea (for those that haven't considered!)?

sultan123

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

mark1959 said:

That's not what you asked originally is it.
"Will i pay more tax if the threshold remains the same on my £95,000"
No. [still the same]

agree that was my original question but now wanting to know how much extra tax I am paying in view of freeze for prolonged time

It's still the same answer, none.

But each year the PA would have gone up saving me some money each tax year. Surely with a freeze on PA, I lose out?

That's a different question though!

Any thoughts now the freeze continues for another 2 years

[Deleted User]

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

Dazed_and_C0nfused said:

sultan123 said:

mark1959 said:

That's not what you asked originally is it.
"Will i pay more tax if the threshold remains the same on my £95,000"
No. [still the same]

agree that was my original question but now wanting to know how much extra tax I am paying in view of freeze for prolonged time

It's still the same answer, none.

But each year the PA would have gone up saving me some money each tax year. Surely with a freeze on PA, I lose out?

That's a different question though!

Any thoughts now the freeze continues for another 2 years

None. Still the same!

TheAble

It is still the same - but you still lose out because the part you are left with, while unchanged, buys progressively less owing to the inflation bite.

sultan123

sorry my question is how much extra tax would someone on 95k be paying over the course of next 5 years due to the freeze vs without the freeze.

Dazed_and_C0nfused

sultan123 said:

sorry my question is how much extra tax would someone on 95k be paying over the course of next 5 years due to the freeze vs without the freeze.

They would be paying no extra tax.

You just don't get this do you.  

Let's say in year 1 your pay is £95k and your take home pay is say £65k (just an example, not necessarily accurate).

And the Personal Allowance and rate bands are then frozen for five years.

In year 5 your pay is still £95k then your take home pay will still be £65k, you won't be paying Amy more tax at all.

sultan123

I get my tax is same but if the PA increased each year, my take home each year would be higher. Now that it is frozen, I am trying to understand how much extra I am losing if you get me. 

So my question is related to PA freeze

sultan123

It looks like BBC seem to have answer.

Extra £670 for higher rate of tax earners

https://www.bbc.co.uk/news/business-63675313

molerat

sultan123 said:

It looks like BBC seem to have answer.

Extra £670 for higher rate of tax earners

https://www.bbc.co.uk/news/business-63675313

Unfortunately that number is just like the £2500 energy cap, pure fantasy.

sultan123

molerat said:

sultan123 said:

It looks like BBC seem to have answer.

Extra £670 for higher rate of tax earners

https://www.bbc.co.uk/news/business-63675313

Unfortunately that number is just like the £2500 energy cap, pure fantasy.

Was trying to understand where that number came from any if any assumptions but nothing on E&Y site either