Income Tax: Do you agree with the Govt’s changes? Poll results/discussion

Mikeyorks

kavomix wrote: »

So to compare the old and the new correctly, (to work out who is quids in, and who is left out to dry) you need to run an example of how much tax you would be paying this tax year if the whole tax system was left the same and the normal increases to the personal allowance and 10% bracket had taken place.

That's known as having your cake and eating it? You cherry pick the bits that seek to make your point and ignore the ones that don't.

Yes the basic personal allowances would have inflated - but not to the significant level given to those over 65 ! There's a new 10% savings band that essentially gives 10% on their savings interest to those that enjoyed that with the 10% tax band - and it clearly works better for those with personal allowances heightened above inflation. And NI thresholds are increased. So calculations which merely exclude the effect of a basic personal allowance moving from £5225 to £5435 ..... are plain daft.

Whilst I think Labour have been criminally dumb in what they have done. And their myopia in failing to also see the adverse impact of the 10% tax band abolition - as opposed as the beneficial they have PR'd - must rank as the sort of gross misjudgement that's a sackable offence in any other job. Nevertheless you have to do as they keep pointing out .... and view the changes as a package. And you can't just select the bits that suit.

DannysMum

Even those not affected by the 10% rate band having been abolished are being affected by the reduction in the basic rate band.
If you pay into a private pension you are given tax relief at the basic rate, so you are now being given just 20% relief and not 22%.
Also if you are buying childcare vouchers under the salary sacrifice scheme and are not a higher rate tax payer you are losing out on 2% tax relief.
I have just finished maternity leave and returned to work. I have lost out on the abolishan of the 10% band and the introduction of the apparent tax cut of the basic rate band. Plus if we wanted to ensure that we get the same out of our pensions my husband and I would have to increase what we pay into our private pensions. We can't afford to do that so I guess we'll have to worry about that when the time comes. So much for the government wanting us to save for our futures.

Mark_Beech

That so many poorly paid workers and early retirees are being penalised is appalling.
What this doesn't fully reveal though is the extent to which this government has progressively discriminated against single people living in the UK during the course of the last 11 years.
Anyone who has found their soulmate in life is very lucky. There are many of us out here who would love to be in a long term loving relationship with someone ... but who haven't been as lucky.
So what happens to us childless singles ... particularly those of us on lower incomes?
We find ourselves trying to run a household on a shoestring. We have to pay the mortgage, council tax, car and house insurance, fuel bills, water bills, TV licence, car and house repairs and maintenance, telephone bills, broadband bills etc., etc. The difference is that we have no-one to share our costs with ... no second income coming in, no tax credits, no child allowance.
Just imagine having to survive and run a household on £12000pa. ... ON YOUR OWN.
Having children is a choice. If you calculate that you can't afford them ... then don't have them. Just don't expect your single, loveless, chioldless neighbours and colleagues to step into the breach when you go off on paid maternity leave and also pick up the tab for your child related benefits from our meagre incomes.
Rant over.

Overthetop

Labour government increases the taxation on the lower paid!

I am utterly amazed by this headline and nothing that labour can spout can possibly change my view, that I as a relatively high earner, have had my income increased on the back of increasing the taxation for the lower paid is a good thing for the lower paid and country as a whole.

Utter drivel.

Sorry I am not a great wordsmith-so many more on this thread have voiced it much better.

smala01

I sick to death about hearing of the injustice of the “low paid”. It’s about time that the “average” person is rewarded.

I choose not to have children (because I can’t afford to support them) so I’m not entitled to tax credits. I made personal sacrifices to get an education, learn a new skill and get a better paid job. If you are on low pay then DO the same.

Because I have been responsible I pay much more than my fair share of taxes. I’m sick of subsidising the “low paid”.

P.S. I DO have a lot of sympathy for carers in this situation.

Overthetop

smala01 wrote: »

I sick to death about hearing of the injustice of the “low paid”. It’s about time that the “average” person is rewarded.

I choose not to have children (because I can’t afford to support them) so I’m not entitled to tax credits. I made personal sacrifices to get an education, learn a new skill and get a better paid job. If you are on low pay then DO the same.

Because I have been responsible I pay much more than my fair share of taxes. I’m sick of subsidising the “low paid”.

P.S. I DO have a lot of sympathy for carers in this situation.

"Subsidising the low paid”

I will always be pleased to subsidise the low paid, as that low paid worker in my dotage could well be caring for me in a nursing home as I too have no children or sorting out my pension in the tax office.

I will always be happy to refuse a tax reduction delivered to me through the higher taxation of those on very low salaries.

I would abhor to live in a dog eat dog society where the affluent ignore the needs of those less able than me.

DannysMum

smala01 wrote: »

I sick to death about hearing of the injustice of the “low paid”. It’s about time that the “average” person is rewarded.

I choose not to have children (because I can’t afford to support them) so I’m not entitled to tax credits. I made personal sacrifices to get an education, learn a new skill and get a better paid job. If you are on low pay then DO the same.

Because I have been responsible I pay much more than my fair share of taxes. I’m sick of subsidising the “low paid”.

P.S. I DO have a lot of sympathy for carers in this situation.

Just so you know, the "Average" person with the "Average" income is going to be worse off with this new tax system.
Myself and my husband have also worked hard to earn an above average wage. We are not complaining about not getting state handouts. On the contrary. We are angry that as a working couple through no fault of our own, we are going to be worse off come this months pay day than we were last month.
Also, the really low paid that will lose out the most may well be better off leaving work and claiming "tax credits". Would you prefer to "subsidise" that?

Stephenbw

Mark_Beech wrote: »

That so many poorly paid workers and early retirees are being penalised is appalling.
What this doesn't fully reveal though is the extent to which this government has progressively discriminated against single people living in the UK during the course of the last 11 years.
Anyone who has found their soulmate in life is very lucky. There are many of us out here who would love to be in a long term loving relationship with someone ... but who haven't been as lucky.
So what happens to us childless singles ... particularly those of us on lower incomes?
We find ourselves trying to run a household on a shoestring. We have to pay the mortgage, council tax, car and house insurance, fuel bills, water bills, TV licence, car and house repairs and maintenance, telephone bills, broadband bills etc., etc. The difference is that we have no-one to share our costs with ... no second income coming in, no tax credits, no child allowance.
Just imagine having to survive and run a household on £12000pa. ... ON YOUR OWN.
Having children is a choice. If you calculate that you can't afford them ... then don't have them. Just don't expect your single, loveless, chioldless neighbours and colleagues to step into the breach when you go off on paid maternity leave and also pick up the tab for your child related benefits from our meagre incomes.
Rant over.

I am an early retiree living on a gross pension of £8450 pa and will be paying £160 pa more tax as a result of the 10p abolition.

I am also a single person running a household and cannot agree with your take on the government's policies to reduce child poverty.

I have absolutely no problem with child benefits and child tax credits. After all I, and most of the people on here, will have benefited from the Child Benefit/Family Allowance we received as children.

Yes having children is a choice, and I am grateful that there are those who are selfless enough to choose to have children despite the enormous financial burden of bringing up a child.
The children of today will be paying for our pensions and health care when we reach state retirement age, so it is only fair that we pay a small contribution now to bring up those children.

You say that as a single person you cannot claim tax credits. This is only true if you are under 25.
Assuming that the £12000 you have quoted is a gross figure; a quick calculation shows that you are entitled to a £7 a week tax credit.

As a single person you are also entitled to a 25% discount on your council tax.

It is true that 2 can live (almost) as cheaply as 1; but to some extent this is also a choice.
Whilst you may not have found someone to share your life you can, as a couple of single friends of mine do, get someone to share your expenses by taking in a lodger.

Derek_A.

Well what did you expect from this shower of s---, that has just about run this country into the ground over the last ten years.
They lie they cheat,and all they are interested in is lining their own pockets,and then await their nice fat pensions.
It is about time we had another tax band for anybody earning over 100K a year should be taxed at 50%

5foot6

I do not agree with the tax change.

I deferred (delayed acceptance) of my State Pension for 12 months. I was not warned by the Government that my Deferred Pension will now be taxed at higher rate than last year !! This is a poor and tawdry deal !!:mad: