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

Baffled

I have recently received the first payment of my small civil service pension of the new financial year. The pension was increased by 3.9% - £50 a year- which is less than £1 a week. I used to pay £18 a month income tax on this pension, which left me with £218.81 going into my bank account. This money was used to pay my larger bills, such as car insurance, council tax etc. This month, the income tax taken from this pension increased to £54.00.leaving me £35.15 a month worse off. Next month I will have to pay £54.80 income tax. This means that some of my bills will now have to come out of my state pension, leaving me less money to spend on food and electricity. How can Darling possibly justify this almost 200% increase in my income tax? Have we ever had such a greedy, grasping government such as the present incumbents? I don't think so!:mad:

Paul_Herring

Financial_Desert wrote: »

Also of course the allowance cannot be given as the tax year progresses but will have to be especially claimed from HM Customs and Revenue following the end of each tax year. Postive cash flow for government negative cash flow for the taxpayer as always.

Not always. If you owe tax, you have the choice of either
a) Paying it at the end of the tax year
b) Having your tax code adjusted so you pay it over the following tax year.

I usually choose (b).

Tindella_2

crossleydd42 wrote: »

I feel sorry for those female state pensioners between 60 and 65 who do not benefit from the increased personal allowances for pensioners aged 65+ and will suffer accordingly.

Such a mean-spirited government with a callous indifference to the waekest/poorest members if its society.

Yup - I'm one of those - wonder if Tesco need any shelf-stackers/trolley collectors/car washers???????? :rolleyes:

MissMuppet

From what I can tell I will be very slightly better off, but I am pretty appalled at all of this, I used to be in a low paid job and I would have been screwed by this... A colleague at work wants to know why they don't tax the very high earners more, it's a bloody farce!

paulbh2

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!

I can afford more but way should I pay more tax? I imagine from your comment above that the govenment you voted for is not stiffing me enough but giving the people who voted it in a taste of the crap I have had to put up with for the last 10+ years. And the reason why I can afford more is that I hold down one full time job and 2 part time jobs and put myself through uni while holding down those jobs. So I think that the govenment should be giving me a bigger tax break and not you.

gloucesteroldspot

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?

I think you will probably do what millions of others will do - vote.

What I find staggering is how out of touch the Labour leadership is. (Although I shouldn't really be surprised, after all Gordon Brown is the man who, a few years ago, thought the pensioners should be happy with a 25p a week increase.) I have not talked to a single person, no matter how much they earn, who is not disgusted by this blatant redistribution from the poor to the rich, and nobody believes the government's weasel words when they say that lower workers will be better off 'when you take everything into consideration.'

They seem to have crushed the feeble back bench revolt on this issue, but I don't think the voters will forget. I believe this will lose them the next election - and I'm a life long Labour voter.

pikey1964

I earn £34,200 so I will be better off by the maximun amount, nearly £400 a year less tax. However I dont feel happy about it. I think this is totally wrong that the worse off are being penalised. Its shambolic.

kirstymccr

I earn £18,895 a year and will be about £68 a year better off - works out at approx £1 a week - cant wait!!

vet8

I shall be worse off and so shall my husband.

I cannot believe that a labour government, which was always supposed to be the party of the working man, could stuff low paid workers in this way.

They say that we can get the money back through tax credits. What a laugh!!

For a start, it is a ludicrous way to run any country by taking tax and then employing an army of expensively paid pen-pushers to refund it to certain people. Then, secondly only some people can claim these credits and we can't.

Great.:mad: :mad:

wcmcallister

Hi,

I'm due to start my first job, after uni, in June. My salary is £28,500, which I understand will mean I'm not adversely affected by the new tax changes. However, I was wondering what the deal is with savings. Am I able to save monthly without paying tax on said savings? I hope to put 300-400 away monthly.

Thanks very much,

W