April 2008 Income Tax and NI Changes: How will they affect you?

Andy_Davies

Paul_Herring wrote: »

This is tax-simplification nu-Labour style.

Yup. Because the tax system in this country is so simple, people forget to claim their entitlement/get confused as to what they are entitled to.

The whole tax credits thing is just a job creation scheme - sack the people who run it and let people keep more of their hard earned money in the first place

DRAGONZ_2

I'm a 62 year old widow. (Income figures below approximate)
Income derived from State Pension and Company Widow's Benefit. Savings approx. £2,000.
2007-8 Gross Income £7730 2008-9 with cost of living rise £8060
Total £330 increase. £6.35 per week. I know that taking into account Council Tax, Electricity, Gas, Rent, Water Rates and food, £6.35 a week is not enough to cover the increases from last year, let alone the increase in Council Tax and proposed gas and electricity hikes this year
My Income Tax for 2007-8 was £280. This year it was going to be £525. An increase of £245. The first half of the "rebate" isn't until September and I have to pay the bills now.
I do have a few chickens for eggs and meat. I grow my own vegetables. I buy and cook food from scratch. I don't go to the cinema, don't drink, smoke, wear make-up, or visit a hairdresser. I haven't had a holiday since 1974. I do get a reduction in my Council Tax but I have too high an Income[really???] to claim Pension Tax Credits , or maybe widows under 65 don't get them? I do get the Heating Allowance, so knew I was going to get the one-off £50 extra this year.They have just announced widowed pensioners under 65 would get the heating Allowance , as though this was a new decision to offset the doubling of Income Tax. Perhaps our Prime Minister, supposedly a religious man, should look in the Bible for the story of "The Widow's Mite"?
If anyone can tell me where I can get more benefits I would be most grateful.
I did email George Brown [twice] over the effect the doubling of Income Tax would have on Widowed Pensioners like myself. Needless to say I did not get an acknowledgement, let alone a reply.
I am in despair. I can see I will have to choose between heating and eating when winter comes.
P.S. Despite several requests I have still not received the all UK pensioner's bus pass I should have had since April 1st.

Stephenbw

oldagetraveller wrote: »

Except for possibly the first item in your list, non of the rest affect the "poor". They all apply to anyone irrespective of wealth?
Typical New Labour "spin". Until Bliar I was a staunch Labout supporter and voter too.

These do not apply to the rich.

Working Tax Credits and Child Tax Credits.
Written off debt for poorest countries and doubled overseas aid.
Children from lower income families receive more in their Child Trust Fund.

Yes they may apply to all, but the other items benefit poor people to a far greater degree than they do the rich. My parents can afford to run a car and will not be using their free bus passes, whereas their poorer neighbours will benefit greatly from it.

Free public transport, eye tests, museums, nursery places, and school fruit mean that poorer people can take advantage of things that they would not otherwise be able to afford and that richer people are able to pay for.

Poorer people could not afford to take 'unpaid leave' or 'buy' extra days holidays, and now benefit from the 24 days paid leave.

I too am more Old Labour than New Labour, but memories of the poll tax, railway privatisation, Section 28, 15% mortgage interest, the miners strike, the three day week, their opposition to a minimum wage, and the absence of any viable policies mean that I will not be voting tory any time soon.:D

Stephenbw

swine wrote: »

Hello.
I have an NHS Pension of £7.500 paid direct from paymaster. I have taken early retirement and this is my only income no benefits. How will these changes efffect me.
Regards.

According to this tax calculator you will still be £60.10 a year worse off.

The chancellor has said he will be looking at further measures to help those of us who will still be worse off in his autumn statement. We will have to see what he comes up with.

You say you have no benefits. If you are single you are automatically entitled to a 25% council tax reduction. You can use this calculator to see if you are entitled to more benefits.

noahveil

Yes, selective memory is a wonderful skill.

I am old enough to well remember the state of this country just before Mrs Thatcher took over viz; uncollected rubbish littering the streets, the dead left unburied, union domination etc etc.

"The Sick Man of Europe" was indeed a fitting description.

Also, having been closely following politics since 1964 I have never experienced a Labour Govt. which had the foggiest clue when it came to running the economy (except into the ground).

RobertTheBruce

ShelfStacker wrote: »

The rich are better off... those on low incomes and working day to day are worse off. And this is a Labour government?

It's not much to me, maybe a fiver a month, but for christ's sake... they've got things a**e backwards! They need to be taxing the people who can afford it more!

Totally agree Shelfstacker but this 10% tax row should have been started 12 months ago when Gordon Brown first announced it in his final budget.
A Labour government indeed, battering the lowest paid and this new £600
allowance still leaves the lowest paid worse off.

noahveil

Stephenbw wrote: »

According to this tax calculator you will still be £60.10 a year worse off.

In purely income tax terms, think you will find that the loss of £86.50 pa as mentioned in #147 is correct (not difficult to work out).

Stephenbw

noahveil wrote: »

In purely income tax terms, think you will find that the loss of £86.50 pa as mentioned in #147 is correct (not difficult to work out).

I'm sorry I can't see where the other £26.40 comes from. I entered £7500 in the calculator and it showed a loss of £180.10 and then deducted the £120 we will be getting back. In my case it is £160.10 - £120 with a net loss of £40.10.

Where am I going wrong?

I have now calculated this myself and still get the same answer.

2007/8 £7500 - £5225 = £2775 - £2230 (10p tax band) = £45 x .22 = £9.90 + £223.00 =£232.90

2008/9 £7500 - £6035 = £1465 x .20 = £293.00


£293.00 - £232.90 = £60.10

mapcr77

Caterina wrote: »

I am really angry with the government with this budget, as I only earn around £7,000 per year my tax bill has been DOUBLED in a fell swoop! Up to now I have never reached the 22% mark as after allowance I only stayed within the 10%, now I shall pay 20% on the whole of my taxable income.

As always, the ones to lose out are the low earner and part timers, and usually these are women. So what's new....

Caterina

True! Exactly the same for me :mad:

nicko33

Stephenbw wrote: »

I too am more Old Labour than New Labour, but memories of the poll tax, railway privatisation, Section 28, 15% mortgage interest, the miners strike, the three day week, their opposition to a minimum wage, and the absence of any viable policies mean that I will not be voting tory any time soon.:D

Council Tax must be a good replacement for the Poll Tax then as Labour have kept it.
Anti-Terror laws used to silence critics
Qinetiq privatisation (sorry, they just gave that away)
Almost everybody has been on strike under Labour, nearly including the Police
Lies, spin, and good days to bury bad news

That said, I expect the next Tory govt will be neither better nor worse, just a tiny bit different.