this 10p tax issue.....

Pennywise

wolvoman wrote: »

Flat rate tax is the only way forward.

Raise the tax free allowance to about £20K per year and then all income above that is charged at somewhere between 30% and 35% with no national insurance, no tax credits, no special benefit top-ups or any of that guff.

Then hundreds of thousands of those public sector non-jobs can go and save all the necessary billions to keep taxes lower and the economy growing.

If only a policitian had the guts to do it. Trouble is they're so scared of the media - the headlines would be an increase in tax from 20% to 30% - the politicians are so dim that they think the electorate really believe the media so they are desperate to avoid bad publicity. All is needed is an honest debate and for the Treasury to think it through properly and set the threshold and rate correctly, and it would be a real vote-winner. Trouble is the Treasury decision makers are incompetent oafs - what with the 10% band withdrawal, stealing inheritance tax ideas from the Tories, introducing then watering down capital gains tax changes, introducing then watering down non-dom taxes - then going further back, introducing low rates of tax for small limited companies, then taking them away again - introducing taper relief for CGT then taking it away again - introducing the 10% rate then taking it away again. They clearly don't understand what they are doing.

Pennywise

duplicated post

lemontart

jason2008 wrote: »

I'm a 35 year old single man, I've been divorced for 5 years and I have a 10 year old son. I earn about 14k, after paying my rent, council tax, household bills, food and 15% of my wages to my ex wife I can honestly say I see nothing out of that, now Mr Brown has doubled my tax rate.
I really feel every last bit of joy is being sucked out of my life, I can't afford to have a life or even re-train to have one. I know there are people worse off then me, but I work hard and have never been on the doll, this is my reward. I really feel I'm suck in a black whole I'm never gonna get out of, I just feel like giving up.


fed up
Jason
(Peterborough)

You have my sympathy, my daughter is now 19 and I earn 13700 and am single do not qualify for tax credits and work 50 hrs a week paying more by the day to get to work - currently recovering from virus could not afford the prescription and do not get paid sick pay .

There is a wave of people now facing poverty due to increasing costs only to have more stress and worry piled on with the loss of the 10 p tax band

I am worried but know other that continue to look for another job at least one local to me and follow the mse lifestyle there is little else I can do, I know it is gonna get worse but hey what does the goverment actually care about the thousands and thousands of folk sliping into poverty each day dispite their best efforts to stay afloat.

I keep thinking sell up grab my tent and strap a solar panel to my back and give up on the rat race .

linden_2

Maybe people earning less than £20,000 should move into communes ; set up co ops to buy food ; share transport ; grow your own veg and firewood ...

AND LET THE POLITICAL PARTIES KNOW THAT THEY WILL ALL VOTE TOGETHER !

Back to the hippy lifestyles of the '60's !

lemontart

linden wrote: »

Maybe people earning less than £20,000 should move into communes ; set up co ops to buy food ; share transport ; grow your own veg and firewood ...

AND LET THE POLITICAL PARTIES KNOW THAT THEY WILL ALL VOTE TOGETHER !

Back to the hippy lifestyles of the '60's !

Ye may jest but to be honest I am considering this option - have started growing veg would love to have solar/wind power but on my pittence of a wage not an option

Liz

linden_2

I've been thinking for years that it would be smart to live in a self sustaining house . It is possible to make your own solar panels and build a straw bale house , but you probably would need a community of people to help build it .
The Danes have come up with "co - housing" which sounds very civilised . Everyone has their own home , but things that can be communal , are .

"The Moneysavingexpert Commune" ?

Chrysalis

is complicated.

everyone is affected who earns taxable income even the super rich but if the salary is high enough the affect is gain not loss.

everyone who works the first part of their salary isnt taxed.
the next part used to be taxed at 10% but is now taxed at 20%.
the part after that remains taxed at 20% this used to be 22%.
the part after that is the top rate of income tax (i think is 40%)

A single childless adult I think the untaxed income is £5,435 per year. So in simple terms you are not taxed 20% on entire income you are taxed 20% on income above £5,435.
Before the changes the 10% band was £0-£2,230 so it would be income between £5,435 and the next £2,230 above it taxed at 10%. This is now taxed at 20%.
Then £2,231-£34,600 above the non taxed income is 20%, used to be 22%.
Then for those who have a high enough salary Over £34, 600 is 40% (£36000 in 2008 so another gain for higher earners as threshold raised)

To make it even more complex the non taxable income decreases as you earn more.

(1) - These allowances reduce where the income is above the income limit by £1 for every £2 of income above the limit. They will never be less than the basic Personal allowance or minimum amount of Married Couple’s allowance.

So even after writing this post I remain confused

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

Nomad25

But I don't want to live in a commune!

I am going get screwed every which way on this new tax.

Married, no kids, both working and earning in the new "20%" pay bracket [at this rate we'll die in harness] and small pensions on the near horizon.

vivatifosi

Nomad25 wrote: »

But I don't want to live in a commune!

I am going get screwed every which way on this new tax.

Married, no kids, both working and earning in the new "20%" pay bracket [at this rate we'll die in harness] and small pensions on the near horizon.

I'm in the same boat and don't want to live in a commune either. What makes me pig sick is that I have to pay an extra £200 per year extra, so that:

* The government can overspend on the Olympics because it got its numbers wrong
* The banks need bailing out, so the Government will help them too
* The government c*cks up so much that even the OFT has to pay fines

Sense a recurring theme? Why should we all live on miniscule earnings and budget carefully not to go overdrawn and be Money Saving Experts when the government are clearly MSMs? (Money Spending Morons)...

olly300

Update
According to Working Lunch today the Chancellor is going to:
1. Give an extra winter fuel payment to pensioners over 60 dated from when the tax change came into effect
2. Change the tax credit system for those couples to compensate them for the "average" loss
3. Get the low pay commission to "look at" the pay for workers under 25