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

CSL_2

This was mentioned in a BBC 2 "Working Lunch" programme several months ago. It will not only affect people in employment but will also hit several million retired people receiving pensions from their former employers.

Might be a good idea to go to the www.bbc.co.uk/workinglunch/ website and send in comments, in the hope that they might re-visit their earlier coverage of this.

Their Producer is Tracey Hobbs.

CSL
Wednesday 21st November 2007

System

CSL wrote: »

This was mentioned in a BBC 2 "Working Lunch" programme several months ago. It will not only affect people in employment but will hit thousands of Pensioners.

Might be a good idea to go to the www.bbc.co.uk/workinglunch/ website and send in comments, in the hope that they might re-visit their earlier coverage of this.

Their Producer is Tracey Hobbs.

CSL
Wednesday 21st November 2007

It should not affect pensioners at all since the government have given them a massive £1480 increase in their 2008-2009 personal allowances whilst the rest of us under 65's will have to settle for the usual £210 increase

see http://www.hmrc.gov.uk/rates/it.htm

CSL_2

Pam17

Apologies, you are quite right.

I should have said, "but will also hit several million receiving pensions from former employers".

Will now correct my my original post


CSL

flashnazia

I worry about the people who are unaware and will just blame their employers when they get their april 08 payslips.

My calculations show that someone on 10k will be approx £172 worse off per year. Thats about 14 quid a month!

I 'm an adviser I know we'll get loads of calls come next financial year from workers complaining and thinking the employer has cut their pay!

I'm fuming as it affects me too!

dunstonh

I worry about the people who are unaware and will just blame their employers when they get their april 08 payslips.

And the pension companies when their direct debits go up because tax relief has gone down to 20%. (of course, its no different as the direct debit increase is offset by the reduction in basic rate paid... apart from low earners).

This change is over a year old and there has been ample to time to complain to your MP about it. Indeed, when it was announced in the budget the media and opposition were quite vocal on pointing out the flaws. Leaving it to last minute is too late.

vivatifosi

Oooh, thanks for that Dunstonh,

I am a pension fund trustee and I guess this is something we should mention at our next meeting.

icefall

thanks for the reminder op

I don't know what to do, it just does not seem fair somehow:mad:

is Gordon Brown trying to put people off working or something??

dunstonh

is Gordon Brown trying to put people off working or something??

Unlikely as anyone earning over £19k is going to be better off. Ironically, the changes to CGT also suit higher earners as well and pension tax relief for higher rate taxpayers remains 40%. Plus you had the IHT changes proposed which will also suit those that are better off. Most un-Labour like.

Andy_L

Wasn't there some claim at the time that increased WTCs are susposed to make up for the loss?

LizD_2

Maybe, but not much use for low earners that don't have a family.