this 10p tax issue.....

Errata

It's quite entertaining watching a government scrambling around trying to patch a great hole in its credibiility when it doesn't understand that you can't put a plaster on a headache.

IanCun

It looks like if you earn between £7,665 and £18,815 then you'll be worse off:

As income increases above £7,665, the benefit of the lower 20% rate (compared with 22%) gradually compensates for this such that at an income level of £18,815 there is no effect of the change of rate, and at a level over this, an individual will be better off because of the rate changes.

http://www.thebusinesslounge.co.uk/index.php/10-tax-rate

The BBC has a good calculator that you can use to see just how you are effected::T

http://news.bbc.co.uk/1/hi/in_depth/629/629/7290230.stm

olly300

larmy16 wrote: »

As GB seems to think 20% tax on all income makes things a lot easier, how about raising the personal tax free allowance to £10,000 - that would help the lower paid and make it a nice round figure for administration! My rent counts for half of my income now and that is excluding council tax, water rates, utilities blah blah.

Fed up, skint, and now even more skint. Thanks GB with your expensively whitened teeth. They don't make you any more attractive by the way.....................:mad:

Nice simple idea but it means the government would have to get rid of the tax credit system (which I think is a good thing because of the maladministration meaning people have to pay it back or in the case of my family members won't claim) which will lead to some of those administrating it becoming unemployed.

eve1962

I'm a carer, I earn 74 a week and recieve carers allance. As CA is taxable (remember we have to care 35 plus hours a week to recieve it) my tax has now increased 100%. I can only work as my employer allows me to bring my adult autistic son with me. I can't recieve WTC as I don't work enough hours, and if I did work enough hours I would lose my carers allowance and would also have to pay for care replacement. By my reckoning I would have to earn at least 20 pounds an hour to pay a care assistant 7- pounds an hour. If you are a single carer of an adult disabled child in this country, labour has you by the short and curlies!

jason2008

linden wrote: »

Have you emailed Frank Field and signed the petition ?

If you have a child , aren't you entitled to any tax credits ?

Have you been to ask for advice ?

I will sign the petition.
I don't think I can get tax credits for a child that isn't living with me full time, though I still have to pay 15% of my wages to my ex wife for his up keep, as well as what I have to pay out at weekends when I have him, I'm not saying I begrudge that, I'm just finding it really hard to do it, Now it's gonna get harder.

Just seems people like myself are always the ones that get the sharp end of the knife, It would be nice to have some sort of life.:mad:

jason2008

larmy16 wrote: »

As GB seems to think 20% tax on all income makes things a lot easier, how about raising the personal tax free allowance to £10,000 - that would help the lower paid and make it a nice round figure for administration! My rent counts for half of my income now and that is excluding council tax, water rates, utilities blah blah.

Fed up, skint, and now even more skint. Thanks GB with your expensively whitened teeth. They don't make you any more attractive by the way.....................:mad:

I know where your coming from mate.

samsonite

This is my first ever post on MSE.

When GB announced the scrapping of the 10% tax band over a year ago, nobody could calculate the affect because the various tax band changes had not been published at the same time.

2007/2008 tax bands were: -


Personal allowance £5,225
Personal allowance for people aged 65-74 £7,550
Personal allowance for people aged 75 and over £7,690

Starting rate: 10% £0-£2,230
Basic rate:22% £2,231-£34,600
Higher rate: 40% Over £34, 600

2008/2009 tax bands are: -

Personal allowance £5,435 - up a measly 4% on 2007/2008
Personal allowance for people aged 65-74 £9,030
Personal allowance for people aged 75 and over £9,180

Basic rate: 20%* £0-£36,000
Higher rate: 40%* Over £36,000

The error was to add the 10% tax band to the old 22% band, then reduce it to 20%. It would have been much fairer, to compensate the lower paid for the loss of the 10% tax band, by increasing all personal allowances by £223. To balance the budget, the 20% band should have been reduced to, say, £32,000. In this way the higher earners would be paying the tax increase. Low earners would be better off, which is what labour try to claim that they are doing.

It would then not be necessary to further complicate the tax system by adding tax credits and other reliefs, which have to be claimed and are expensive to administer: the government were supposed to be reducing the number of staff at HMRC. Selective tax reliefs and credits miss many people. E.g in Prime Ministers questions today GB muttered something about increasing the winter fuel allowance to compensate pensioners in the 60 to 65 age group.

Of course, this proposal would not be acceptable to MPs because it would mean that they must set an example by paying more tax out of their meagre salaries and expenses: this is definitely not the New Labour mantra, or the ideals of a conviction politician. By the way, when is GB going to be convicted.

wolvoman

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.

linden_2

Can anyone tell me ? Will I be compensated in this climbdown ?

I'm not over 60
I'm not a low paid worker
I'm not a childless married couple .

Am I still included ?

wearside_2

linden wrote: »

Can anyone tell me ? Will I be compensated in this climbdown ?

I'm not over 60
I'm not a low paid worker
I'm not a childless married couple .

Am I still included ?

Linden I am in a similar boat to you!

I'm not over 60.
I'm not a low paid worker.
I'm married.
I receive a company pension of under £18000(!).

In fact when I now look, I am not really like you at all:rotfl:but my question is identical.
Am I still included?