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

johnny_storm

Stephenbw wrote: »

Written off debt for poorest countries and doubled overseas aid.

We should not be helping anyone overseas when we have our own poor people. Gordon demanding to help Burma when their government has refused such aid made me feel ill.

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

I have not forgotten the Poll tax either, id be paying half the local tax under that scheme.

15% Interest? Great for savers, pensioners etc.

Dont worry, the torries will be replacing the lie-bore party at the next election and probably for the next 10 - 15 years till people forget what a mess they made.. Just like last time.

Stephenbw

johnny_storm wrote: »

We should not be helping anyone overseas when we have our own poor people. Gordon demanding to help Burma when their government has refused such aid made me feel ill.

Why not? They helped us when we needed it.

The 25 million people of Nigeria sent a quarter of a million pounds to the war charities. This, and other such contributions, have to be seen in the context of local wages. In Nigeria, it was only two shillings (10p) per day. The West African colonies sent a total of one and a half million pounds to the charities, and their governments granted Britain £1 million in interest-free loans.

Such loans must also be seen in context. In no British colony were there sufficient numbers of schools or hospitals, for example. The total contribution of the colonial empire was £23.3 million in gifts and £10.7 million in interest-free loans, as well as £14 million low-interest loans. India also had to pay for its two and a half million citizens in uniform, as well as for the highly paid white British officers.

One could ask: without the colonial contributions, could the Allies have won the war?

We enjoy cheap food, clothing, white goods, electronics etc. in this country at the expense of the truly poor in the developing world. It's only fair that we give some back to those that need it more than we do.

johnny_storm wrote: »

I have not forgotten the Poll tax either, id be paying half the local tax under that scheme.

Don't know how you work that out. I was slightly better off with Poll Tax than the previous Rates. It didn't stop me refusing to pay it, as I could see that the majority, including my parents, were much worse off.

johnny_storm wrote: »

15% Interest? Great for savers, pensioners etc.

Not when inflation was at 18%

johnny_storm wrote: »

Dont worry, the torries will be replacing the lie-bore party at the next election and probably for the next 10 - 15 years till people forget what a mess they made.. Just like last time.

The Tories will only get in if people forget what a mess they made; remember 16th September 1992?:eek:

Stephenbw

mapcr77 wrote: »

True! Exactly the same for me :mad:

If you are exactly the same as Caterina; i.e. earning £7000 pa then the £600 tax allowance increase means you will now be £13.10 better off than if the 10p tax band had remained.;)

BettyBee

It says that any tax we've paid over what whe should have will be paid back to us and backdated to April 6. When will that be happening, anyone have any ideas? I've been having it out with the tax man for the past 6 months cause they were charging me emergency tax and I filled in several forms and nothing ever changed, 5 weeks ago I sent a letter including my p60 and im still waiting to hear.

Typical, they are so quick to take money from your account but not so quick to put it back.

johnny_storm

Stephenbw wrote: »

Not when inflation was at 18%

The Tories will only get in if people forget what a mess they made; remember 16th September 1992?:eek:

Its probably at 18% now, but the government lie and claim 3%. Low interest rates and high inflation are bad.

Interest rates should not go down, in fact they need to go up .. a lot.

To your other point about helping other countries. We cant help everyone. We have homeless on our streets, we have old people waiting for operations, others who cant have the drugs they need to live, we have people who cant afford to turn the heating on. They must be out first priority. I for one dont pay taxes to help people in other countries while our own people suffer.

Paul_Herring

It says that any tax we've paid over what whe should have will be paid back to us and backdated to April 6. When will that be happening, anyone have any ideas?

September. That's when the tax code will change, and the adjustment will be seen on that payslip.

I've been having it out with the tax man for the past 6 months cause they were charging me emergency tax and I filled in several forms and nothing ever changed, 5 weeks ago I sent a letter including my p60 and im still waiting to hear.

Since you don't (I think) have a numeric tax code (I'm guessing yours is 'BR'?) then you won't get it if you still have that code in September.

noahveil

Stephenbw wrote: »

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

The basic personal allowance is £5435 for f/y 08/09. You have to make any comparison solely on this year's figures, not compare this year with last year's ie to get what the situation would be if the 10% rate had not been abolished (the PA would still have gone up to £5435).

"Old" System

Income £7500 minus £5435 personal allowance = £2065 x 10% tax = £206.50 tax.

"New" System

Income £7500 minus £6035 personal allowance = £1465 x 20% tax = £293 tax

Therefore still paying £86.50 (£293 - £206.50) MORE tax.

Ch4rlieB

littlekitty wrote: »

I don't know where you got your tax bands from, but they are incorrect.

From the HM Revenue and Customs Site:



Would be nice if higher rate was really over £41K, but it just isn't true!!

I think you need to relook at the wesbite. What you have is befor the tax free amount. If you add the tax free amount onto your amounts you get the amounts on this forum.

Mayday

Just working my way through this thread :0

carolineb23 wrote: »

But you don't get tax credits unless you are living on your own do you? I have never been able to get them because I live with my partner even though my wages are low

My husband works 40 hours a week; I work 22 hours, and he gets Working Tax Credit.

Just waiting for my P60 to come in for our next WTC review.

HTH - and apologies if someone has already answered this.

Ann.

Stephenbw

noahveil wrote: »

The basic personal allowance is £5435 for f/y 08/09. You have to make any comparison solely on this year's figures, not compare this year with last year's ie to get what the situation would be if the 10% rate had not been abolished (the PA would still have gone up to £5435).

"Old" System

Income £7500 minus £5435 personal allowance = £2065 x 10% tax = £206.50 tax.

"New" System

Income £7500 minus £6035 personal allowance = £1465 x 20% tax = £293 tax

Therefore still paying £86.50 (£293 - £206.50) MORE tax.

I can see what you are saying but I'm afraid I can't agree.
I am interested in the overall changes to my income tax as a result of the budget.

How can you be sure that the PA would have risen to £5435?
The chancellor could have kept the 10p tax band and frozen the PA, or abolished the 10p, kept the basic rate at 22p and increased the PA to £7000, or as he has now done; abolished the 10p, reduced the basic rate to 20p and increased the PA to £6035. There are endless permutations.



The fact is that as a result of all the measures introduced in this year's budgets I will be paying £40.10 more income tax than last year, Swine will be paying £60.10 more and these will be the increases shown when we compare this year's P60s with next year's.