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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 8th Jul 15, 3:31 PM
    • 2,324Posts
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    Former MSE Helen
    MSE News: Summer Budget 2015: Income taxes to be cut
    • #1
    • 8th Jul 15, 3:31 PM
    MSE News: Summer Budget 2015: Income taxes to be cut 8th Jul 15 at 3:31 PM
    The Chancellor is to bring forward planned increases to both the personal allowance and the higher rate tax thresholds...

    Read the full story:

    Summer Budget 2015: Income taxes to be cut




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Page 1
    • zygurat789
    • By zygurat789 8th Jul 15, 4:16 PM
    • 4,229 Posts
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    zygurat789
    • #2
    • 8th Jul 15, 4:16 PM
    • #2
    • 8th Jul 15, 4:16 PM
    Helen, may I just ask why does a person's personal allowance depend upon their salary?
    I think it is only fair to Georgie boy, to point out that he is going to pass a law saying that he can't increase rates of National insurance next year, but then why would he want to because if he increases the higher rate tax threshold he gets 12% NICs on income below the threshold but only 2% on income above it.
    The only thing that is constant is change.
    • TomJ
    • By TomJ 8th Jul 15, 10:13 PM
    • 208 Posts
    • 116 Thanks
    TomJ
    • #3
    • 8th Jul 15, 10:13 PM
    • #3
    • 8th Jul 15, 10:13 PM
    Helen, may I just ask why does a person's personal allowance depend upon their salary?
    Originally posted by zygurat789
    It doesn't. You have a personal allowance which isn't taxed, and everything above is.

    I think it is only fair to Georgie boy, to point out that he is going to pass a law saying that he can't increase rates of National insurance next year, but then why would he want to because if he increases the higher rate tax threshold he gets 12% NICs on income below the threshold but only 2% on income above it.
    But as the NI Upper Earnings Limit is moving in line with the higher rate of income tax threshold while there's 10% more in NICs, there's 20% less income tax.
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • Purplesky
    • By Purplesky 9th Jul 15, 3:40 AM
    • 152 Posts
    • 206 Thanks
    Purplesky
    • #4
    • 9th Jul 15, 3:40 AM
    • #4
    • 9th Jul 15, 3:40 AM
    Actually Tom J, I think the personal allowance might be tweaked or eliminated somewhere around the £150k-£200k mark.
    • TomJ
    • By TomJ 9th Jul 15, 6:28 AM
    • 208 Posts
    • 116 Thanks
    TomJ
    • #5
    • 9th Jul 15, 6:28 AM
    • #5
    • 9th Jul 15, 6:28 AM
    Good point, well presented. The personal allowance withdrawal is such a daft distortion of the already overly complicated tax system (plus not something likely to affect me in the immediate future) I edited it out of my head. mea maxima culpa.
    I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Bear in mind, even most of this disclaimer is ripped off another forum user. Please check out the facts first before doing anything.
    • zygurat789
    • By zygurat789 9th Jul 15, 8:34 AM
    • 4,229 Posts
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    zygurat789
    • #6
    • 9th Jul 15, 8:34 AM
    • #6
    • 9th Jul 15, 8:34 AM
    It doesn't. You have a personal allowance which isn't taxed, and everything above is.



    But as the NI Upper Earnings Limit is moving in line with the higher rate of income tax threshold while there's 10% more in NICs, there's 20% less income tax.
    Originally posted by TomJ
    The very points I was making. Have you read the article?
    The only thing that is constant is change.
    • zygurat789
    • By zygurat789 9th Jul 15, 8:34 AM
    • 4,229 Posts
    • 1,993 Thanks
    zygurat789
    • #7
    • 9th Jul 15, 8:34 AM
    • #7
    • 9th Jul 15, 8:34 AM
    Actually Tom J, I think the personal allowance might be tweaked or eliminated somewhere around the £150k-£200k mark.
    Originally posted by Purplesky
    Exactly, tthe PA does not depend on salary
    The only thing that is constant is change.
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