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

jem16

Keith1946 wrote: »

Using the same calculations, I estimate the Break-even point to be circa £18,800.
Bearing in mind I am ignoring National Insurance from the calculations.
If my calculations are incorrect then I am happy to be shown where I am going wrong. My Local Tax Office confirmed that I will be paying more tax in the coming Tax Year.

The problem is that your particular situation is probably in the minority. Most people who are under state retirement age will be working and therefore having to pay NI.

Those over state retirement age and on your income of £9,141 will be paying no tax at all as the increased personal allowance for over 65 is to be taken to £10k within the next two years. Next year it will be £9030(over 65) and £9180(over 75).

Keith1946

I accept my figure for the 2008/09 was incorrect and should be£5435 and not £5405.
I was also comparing OLD & NEW system using 2008/09 figures which I accept makes an assumption that if the 10% Band was retained it would be the same.
Yes my calculations excluded changes in the N.I. because I obtain my Income from a pension not "earned income", but as I am not of Pensionable Age I cannot obtain Pension Credit (unless you know some way I can?). I do not consider my post as meaningless as I stated that I was receiving my Income as a Pension. I accept that the number of people in similar circumstances is small, but I cannot see that it is equitable for me to pay more tax when I am on such a low income.
I am allowed to make my opinion heard just as you are.
Using the amended figures and comparing OLD system 2007/08 and NEW system 2008/09 I will be paying an extra £147.28 in 2008/09. This may not seem to be large (£12.27 per. month) but why should I bear a tax increase while others with a much higher Income will experience either a neutral or negative result.
My calculations are as follows:
Gross Income £9,141
OLD system 2007/08 £9,141 - £5225 F.A. = £3,916
£2230 @ 10% = £223.00
£1686 @ 22%=£370.92 Total Tax Paid = £593.92

NEW system 2008/09 £9,141 - £5,435 F.A. = £3,706
£3706 @ 20% = £741.20 Total Tax Due = £741.20
An increase of £147.28

lemontart

ah well screwed again, rising gas and electric, higher petrol costs, endowment shortfull earning less than I was earning 15 yrs ago and working longer hrs for the pleasure of mr brown taking aprox 400 a year more tax off me.

tghe-retford

Keith1946 wrote: »

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...

...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.

My feelings as well. People who go out and work and do low paid but vital work are the ones being pinched in every way. I find it unbelievable as to how the low paid and part time workers are being classed in the same way as workshy scroungers told to "get a job".

After the Government target benefit claimants in their current plans, they are planning as announced by Gordon Brown and as part of their 10 year plan to target poverty, to target low paid workers in the same way as the workshy. It will be the stick approach where workers will have to take up training courses. As they are not in receipt of benefits, they will have to fund the courses themselves out of their own pocket. If they fail to, then they will be hit by sanctions from their employer (as the NHS do, explained below).

The NHS do this already as part of the "Agenda for Change" introduced across the NHS. In order to progress up the pay band you are in, you have to undertake training and do more in your job role to secure a good pay rise year after year. When you reach the top of a pay band, you have to move into a higher banded pay job (therefore promoting the career ladder approach the Government wants to introduce). Failure to do so can lead to you only getting below inflation increases in the cost of living. The pay bands are longer the higher up you go (obviously to make people lower down go up the ladder quicker than those who do the higher qualified jobs they want to keep there).

The Government can't take your wages away if you don't get a higher paying job, but I bet they would try if they could.

Then again, if you can find a job around here that pays over £18,000 which doesn't ask for a degree or years of experience then I would love to know. In my area, its minimum wage hard labour (and will be hit by higher taxes), part-time "flexitime" low paid work to appeal to parents of children or applying for jobs which are beyond the reach of many people.

I also asked the Citizens Advice Bureau what I could do regarding the tax increase I will face in April. They said there is nothing that can be done other than to tighten your belt. Says it all really.

The only way that we can show that the low paid are being ignored and the vital work they do for society and the economy is if everyone below a certain annual salary and the unions got together and staged a national strike. Maybe then, employers, the Government and society can see how vital it is to employ people in low paid jobs to keep the country going. Of course, that's about as likely as Chancellor Darling knocking at my door and giving me £1000 out of kindness.

The media (and the Government) don't care for the lower classes in the UK, that's already been raised with the coverage of Shannon Matthews disappearance this week. In particular, the single childless people of the UK are constantly forgotten by the Government. Its no wonder why so many are leaving this country for a better life overseas.

ShelfStacker_3

I've just done all the sums: I'll be £7 worse off each month, adding up to £84 a year down. Hopefully though I'll be receiving a pay rise end of this month, which should offset this somewhat. I hope...

CannyJock

ShelfStacker wrote: »

I've just done all the sums: I'll be £7 worse off each month, adding up to £84 a year down. Hopefully though I'll be receiving a pay rise end of this month, which should offset this somewhat. I hope...

You might need to use the extra to make up the reduced amount going into the pension pot from any personal contributions

And to pay for the ever increasing cost of luxuries, like fuel, food and drink

ShelfStacker_3

My employer has a non-contributory pension scheme, so they burden the cost on that. On drink, food and fuel, I think I can afford an extra couple of quid or so. Certainly not worthy of the "OMG HE SHOULD RESIGN NOW" that seems to have taken over the BBC's message boards...

furby-2003

I earn on a part-time wage around £13k its been frozen for 3 years. my partner earns an average wage and we have a 7 year old. this you think you even the balance but no. we stopped collecting tax credits 2 years ago after a £7k overpayment and wont start again. so it feels like a bit of a double whammy.

i tell you what annoys me, i dont even vote labour after the problems with the tax credits in 2005.