Non-partisan mini-budget predictions thread

Band7

coastline said:

talexuser said:

I assume the dividend rates are staying the same, the reduction in the KamiKase budget were reversed? So if higher rate is still 33.75% with allowance of £500 I'll pay an extra £506 a year (ISA and SIPP maxed). I still think the personal allowances freeze is the biggest tax hike that most people do not register the impact, particularly in periods of high inflation. One comment I've heard already is at least income tax hasn't gone up....  but with years of allowance freeze the result certainly has!

With the 10.1%increase in the state pension that'll mean even less in the personal allowance . Pensioners with a small second pension will pay more income tax. Not what they wanted to hear.  

Probably not. They'll still have more money than before though. Plus their £300 additional cost of living payment, on top of the usual pensioner perks such as winter fuel allowance and free bus travels.

eskbanker

kev2009 said:

I've recently started buying some shares and I left them in a standard share account as I'm totally new to this and didn't want to pay fees to have them in a isa type account when potentially I may not make any money and would still be paying fees.

Which standard share account are you using and do they definitely charge differently for ISAs?

kev2009 said:

I could potentially sell them and re-buy in a ISA but I'm already down over 1k and don't really want to sell and buy again as prices have started to rise a bit on my shares.

If you're selling unwrapped and immediately rebuying within an ISA (often referred to as Bed & ISA) then you'd be doing so at roughly the same price for each transaction, and what you actually paid in the first place is irrelevant.

kev2009 said:

I presume the 1k you can make in interest on savings accounts is still remaining/not changed? I didn't see it referenced anyway but thought I'd just check in case it has been and I missed it.

The personal savings allowance hasn't changed.

mebu60

coastline said:

talexuser said:

I assume the dividend rates are staying the same, the reduction in the KamiKase budget were reversed? So if higher rate is still 33.75% with allowance of £500 I'll pay an extra £506 a year (ISA and SIPP maxed). I still think the personal allowances freeze is the biggest tax hike that most people do not register the impact, particularly in periods of high inflation. One comment I've heard already is at least income tax hasn't gone up....  but with years of allowance freeze the result certainly has!

With the 10.1%increase in the state pension that'll mean even less in the personal allowance . Pensioners with a small second pension will pay more income tax. Not what they wanted to hear.  

Better than what MattMattMattUK was proposing!

mebu60

Reduced higher rate threshold to £125,140. 
Why not £125,160 so that it divides by 12? 

Millyonare

Exodi said:

sammyjammy said:

I wonder how many people will end up on NMW that aren't now.  Its depressing, we have a race to the bottom.  

MA260 said:

The Living wage is rising to £10.42 per an hour. This would mean someone on full week would be earning over 20K per Year. There will be a lot of people who will now be affected by the minimum wage increase that were just 3/4 years ago well above it, even though they will have received average salary increases in the meantime.

As an employer with around 30 staff, the increases proposed by the government are scary. We used to pay a decent chunk above minimum wage, but after the past couple of years of relentless cost increases, we are now expecting to finally have our production staff drop onto minimum wage.

We are now staring down the barrel at a possible 9.7% wage increase for minimum wage workers, following a 6.6% wage increase proposed last year. Our managers and senior managers certainly will not be receiving 9.7% increase, nor did they receive a 6.6% increase last year. We're also mindful of the future issue of managers thinking "why am I accepting all these additional responsbilities, when I'm no longer being paid a reasonable amount more".

I don't know what the answer is, keep putting up our prices up I guess? Our gross margin has already taken a battering this year.

For me, I'd be looking at trimming staff levels by 10-20%. The absurd minimum wage and tax onslaught look a major threat to business. If costs are forced up 10-20%, I need to bring costs down 10-20%.

Not advice, etc.

coastline

Band7 said:

coastline said:

talexuser said:

I assume the dividend rates are staying the same, the reduction in the KamiKase budget were reversed? So if higher rate is still 33.75% with allowance of £500 I'll pay an extra £506 a year (ISA and SIPP maxed). I still think the personal allowances freeze is the biggest tax hike that most people do not register the impact, particularly in periods of high inflation. One comment I've heard already is at least income tax hasn't gone up....  but with years of allowance freeze the result certainly has!

With the 10.1%increase in the state pension that'll mean even less in the personal allowance . Pensioners with a small second pension will pay more income tax. Not what they wanted to hear.  

Probably not. They'll still have more money than before though. Plus their £300 additional cost of living payment, on top of the usual pensioner perks such as winter fuel allowance and free bus travels.

Yes I agree cost of living payments , one offs or not , all help. In the last two years if the personal allowance had been increased with inflation to say 15% it would be £14,450 but as it's frozen until 2026 it's staying at £12,570. So £1,880 is taxed at 20% or over £370 a year . Worse to come until 2026.

Exodi

mebu60 said:

Reduced higher rate threshold to £125,140. 
Why not £125,160 so that it divides by 12? 

Between £100,000 and £125,140, every £2 earned reduces your personal tax allowance by £1. The personal tax allowance is £12,570.

So the logic is, at the point you earn £125,140, you would have reduced your personal tax allowance to £0 (£25,140 / 2 = £12,570).

Millyonare

Today's budget is a disaster. As bad as feared.

Tax and axe.

A middle manager on ~£60k is set to pay ~£15k more tax over 5 years.

The war on wealth has just begun 😒

hallmark

One of the aspects I find staggering and depressing in equal measure is that Hunt literally boasts about "not changing the headline rate of tax" as if that's a GOOD thing, when it's meant the majority of his measures are being implemented by stealth.

Talk about saying the quiet part out loud. These people are so used to being dishonest they can't even remember when they're doing it.

Once upon a time, you'd get the likes of Gordon Brown who loved nothing more than to keep headline rates ostensibly low whilst stealthily raising tons via Fiscal Drag.  At least he, vile though he was, actually understood his own policy enough not to openly point out what he was doing...

kev2009

eskbanker said:

kev2009 said:

I've recently started buying some shares and I left them in a standard share account as I'm totally new to this and didn't want to pay fees to have them in a isa type account when potentially I may not make any money and would still be paying fees.

Which standard share account are you using and do they definitely charge differently for ISAs?

kev2009 said:

I could potentially sell them and re-buy in a ISA but I'm already down over 1k and don't really want to sell and buy again as prices have started to rise a bit on my shares.

If you're selling unwrapped and immediately rebuying within an ISA (often referred to as Bed & ISA) then you'd be doing so at roughly the same price for each transaction, and what you actually paid in the first place is irrelevant.

kev2009 said:

I presume the 1k you can make in interest on savings accounts is still remaining/not changed? I didn't see it referenced anyway but thought I'd just check in case it has been and I missed it.

The personal savings allowance hasn't changed.

Hi,

The stooks and share ISA I would be charged 0.45%, the normal share account has no charges if not used etc, only charges are the normal buy/sell charges of investments but no account management charges so even if i don't buy any shares for a year or 2, it wont cost me anything to have it, unlike the Stocks and shares ISA so hence I went with that option as I was only expecting to have them for a year or two but as things turned out markets all dropped etc so I've still got them and hoping they come back up

I mainly bought during the pandemic as I was hoping to try offset my increased costs and was hoping to make a few quid via shares as it was all sounding promising from news i was reading etc but hasn't happened yet but the company is still doing well themselves i.e. reducing debt and making profit etc so it still seems a very good option for me, its just market conditions holding git back I think at the moment.  Share price has gone below 1/2 what i initially bought in at but oh will, hoping it recovers.  Not a massive investment by any means, I mean I could double my money and not reach the cap gains total at present hence why I decided the account would be fine as I'd be more than happy if doubled my investment and was no risk of potentially loosing profits due to tax etc,

Kev