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

ANDENA

just worked out mine and i am £28.10 a fortnight worse off another nail in the coffin my husband on incapacity benefit and that is peanuts.that means a big difference to us a month,i would love to swap places with Gorden Brown and see if he could survive with all increases,that we have had to put up with.:mad:

jeremyhills

Am I missing something? Lower tax £600 at 20% = £120 saving; Higher tax at £600 at 40% = £240; net loss £120 for higher rate tax payers! The higher rate should start at £300 lower than before, not £600.

nicko33

jeremyhills wrote: »

Am I missing something?

yes.
That £600 at 40% was previously being taxed at 20%, so the difference between it being taxed at 20% and 40% is £120.

I-LOV-MONEY

nicko33 wrote: »

yes.
That £600 at 40% was previously being taxed at 20%, so the difference between it being taxed at 20% and 40% is £120.

you've all lost me !

I don't fall into that bracket. I just want to know as I receive a company pension and hardly any currently earned income, will I benefit from the threshold increase?

Thanks.

Mikeyorks

yabbadoo wrote: »

BUT this new mini-budget Personal Allowance increase specifically EXCLUDES over 65's.

That's not quite the whole truth. The £600 increase does only apply to the basic personal allowance (PA) of £5435. But that can equally impact someone of 65 and over whose income exceeds £21800? As there is a clawback of the PA over that rate and it reduces by £1 for every £2 that income exceeds £21800. But the clawback cannot reduce the PA below the basic of £5435 (now £6035).

So the increased basic PA has to equally apply to someone aged 65 and over. Otherwise the resolution of one idiotic problem ..... would simply create another!

minted007

lovingheart wrote: »

I am in the same situation and feel our Labour government betrayed workers on low incomes and brought more gloom and misery in their lifes. But what can you do?

Vote for the monster raving looney party

dhassen

Thanks to MSE for the note in this week's e-mail about the extra £60 in September's pay packet.

Just wondered yet, those of us on the 'good' side of the graph who should've been better off with the 20p threshold, has anyone noticed a difference in their pay packets since April? I haven't, but wasn't sure if this didn't come into affect until September either? Can anyone clarify this? Or if anyone's pay packet has been better off since April (because of the change, not a pay rise or whatever) can you let me know? Cheers!

cadenza82

dhassen wrote: »

Thanks to MSE for the note in this week's e-mail about the extra £60 in September's pay packet.

What will happen to those of us who are self employed?

Moonbeam

I've been on maternity leave for 12 months, then paid holiday for 8 weeks then a further 22 weeks on paternal leave - will I get the £60 or not as technically when I was receiving my paid holiday I paid tax on this at 20%, but now I'm on unpaid paternal leave I don't get a salary. v. confused.

Moonbeam

dcmbarton wrote: »

What will happen to those of us who are self employed?

According to this weeks working lunch you will still get the benefit, but not until 2010 due to the timing of tax returns - I think it was Monday's programme that discussed this - you can catch up with it on them bbc's website.