Abolition of the 10% Tax Band and reduction of Standard rate to 20% [Merged]

Ted_Bloke

krisskross wrote: »

A female pensioner aged between 60 and 65 with an annual income of £8K will see her tax bill rise immediately from £200 pa to £400 pa.

But when she is 65 she will pay nothing.

studentphil

Morglin wrote: »

Yes, we will too - although we are both medically retired, the new tax changes will mean that we will pay more tax than we do now on our private pensions.

Must be the new way - those on benefits and private pensions, along with those on low wages, subsidise the wealthy and the well-paid workers, instead of the other way round - sort of Robin Hood in reverse.........:eek:

Still, what can you do?

Lin :rolleyes:

It's sort of negative equality. It seems a bit stupid to me.

Morglin

I think that it's to stop us feeling like scroungers.

Now, we, the benefit and personal pension class, can boo and hiss at the well paid workers with children, that we are subsidising.............and perhaps ask the Daily Mail to tell us how much they are costing us.:T

So, there is a sort of morality here - pay more, but feel good.

I may have to turn the heating off, but my self esteem has rocketed...........:rotfl:

Lin

wolvoman

tghe-retford wrote: »

I am going to be hit very hard next April. I will be £161 a month out of pocket which leaves me with £30 to spend on food, travel to work and other utilities, and even then, inflation busting price increases in the essentials mean that the £30 will be swallowed up and I will have nothing left to live on.

In fact, I will be much better off being on the dole.

2 things:

1. How can you be £161 worse off come April per MONTH??

2. If you're better off on the dole than working then benefit rates are too high.

exil

Yes, something wrong with the arithmetic there.

The extra tax is a maximum of about £200 PER YEAR not per month.

Most people will get more in tax credit to compensate. Have you claimed tax credit?

cyclonebri1

Not read every bit of detail here but it appears that under 65 age pensioners will be affected fully by this, ie none of the over 65 increases and all of low earner increases.

Therefore any one forced into early retirement for whatever reason is hit hard.

cazzybabe

same old thing is'nt it - we the decent honest hard working people get penalised. what has happened to our country - everything has turned upside down - we dont look after our own, we give to plenty of help to other countries - people who are loyal hard working british citizens are at the bottom of the pile. Who seems to care though - the government doesnt. Why cant we be given a little island somewhere so we can live in country where we are treated fairly, and not be afraid to face the yobs.
Sorry for garbling but there seems to be so much unrest with everything going wrong for the people who deserve better.
Why doesnt any body take any notice of us!!!!?????

exil

We're all entitled to an opinion. I think Brown should have increased allowances to cancel out the effect of the abolition of the 10% band, it wouldn't have cost much. I'm not sure what the rest of the last post was about though!

Keith1946

It appears as if the abolition of the 10% Income Tax Band and the reduction in the Standard rate of Tax to 20% in the 2008/09 Tax year has not attracted a lot of interest. There are many people like myself, with low Gross income, who will be worse off while people earning in excess of £18,800 a year will be better off. Very low earners (below £5404 per.year) and people who receive Tax or Pension credits should not be affected, but there is a large number of people who will be. Our Tax system is supposed to be equitable, unfortunately nobody told Gordon Brown and the Treasury.
It amazes me that none of the National Newspapers, such as Money Mail, have not picked up this "injustice". Perhaps it affects only a small number of people. I have written to the Treasury, but have not received a reply to date.

Mikeyorks

If you'd looked / posted in the 'Cutting Tax' forum you would have found several previous threads. Several of which reference media cover from Oct 2007 .... when it was announced.