can someone explain this

[tris-]

keep seeing on the news about a 10p tax band and something is happening to it but no one wants it to happen.

can someone explain simply WTF it is and what the problem is?

 

[Lollie]

They are going to scrap the 10% intorductory tax rate for income tax (10p) so people will now have to pay 20% instead, basicly if you earn 18k or under a year, retired early, or are part time your getting screwed (from what i can gather from bbc news website

 

[tris-]

i dont work at all atm but i plan to in the summer.

 

[Cadelin]

Income tax is based on bands.
The first £5,225 that you earn in the year is tax free.
The next £2,230 that you earn in the year is taxed at 10%.
The next £32,369 that you earn in the year is taxed at 20%.
Anything you earn over that is taxed at 40%.

The 10% tax rate is going to be abolished. That means that someone earning £7,500 a year would face £223 in extra tax. The government have reduced the standard rate of 20% (it was 22% I believe).

This means that if you earn £17,000 a year (roughly) you would pay the same amount of tax. If you earn more than this you pay less tax (which is why it was done!) but if you are on a low income to have to pay more!


Warning Boring Link

 

[Raven]

Labour have gone for the piss off as many core labour voters as possible to get them to not bother turning out to vote

 

[Laddey]

Income tax is based on bands.
The first £5,225 that you earn in the year is tax free.
The next £2,230 that you earn in the year is taxed at 10%.
The next £32,369 that you earn in the year is taxed at 20%.
Anything you earn over that is taxed at 40%.

The 10% tax rate is going to be abolished. That means that someone earning £7,500 a year would face £223 in extra tax. The government have reduced the standard rate of 20% (it was 22% I believe).

This means that if you earn £17,000 a year (roughly) you would pay the same amount of tax. If you earn more than this you pay less tax (which is why it was done!) but if you are on a low income to have to pay more!


Warning Boring Link

Holy shit.

I'm glad i get paid cash

 

[tris-]

it doesnt look that terrible to me.

 

[Chronictank]

it doesnt look that terrible to me.

if you're below the 17k band or retired you would tho

 

[tris-]

if you're below the 17k band or retired you would tho

im neither atm, but when i leave uni i will probably notice it.

 

[svartalf]

Anything you earn over that is taxed at 40%.

...except if you're a nondom or other type of millionaire in which case you keep your money in a tax haven such as Jersey or Monaco.

It's a big con.

 

[tris-]

40% tax is massive. whats the point being a pilot or something earning 80k a year, if half of it you dont even get?!

they tax these rich people to fuck yet it doesnt do anything for the less wealthy.

 

[Chronictank]

40% tax is massive. whats the point being a pilot or something earning 80k a year, if half of it you dont even get?!

they tax these rich people to fuck yet it doesnt do anything for the less wealthy.

if you are earning that sort of money you will have an accountant to organise it so you can abuse loopholes to pay less tax

rich get richer etc

 

[Marc]

BBC NEWS | Special Reports | 629 | 629 | Budget calculator 2008

I didnt fill in the alcohol, cigs and motor sections

Im £163 better off a year. Cheers Gordon!

 

[Marc]

40% tax is massive. whats the point being a pilot or something earning 80k a year, if half of it you dont even get?!

they tax these rich people to fuck yet it doesnt do anything for the less wealthy.

Its not all taxed at 40%. You pay 40% on anything over £36,000 (about)

 

[Marc]

if you are earning that sort of money you will have an accountant to organise it so you can abuse loopholes to pay less tax

rich get richer etc

If you are employed (eg, PAYE or "cards in" to the tradesmen among you), there is not a whole lot you can do to avoid paying tax. An airline Pilot maybe able to claim non residency depending on where he flies and how long out of the country he is. (if you are only in the UK for less than 90 days a year and employed by a uk company, you can get all your money tax free). I have clients who'm I tell to go on holiday for 3 weeks because this counts towards your days out of the country. This takes them over the necessary days out of the country and they get all their money tax free. I had one guy who was set to pay £40k in tax. His 3 week holiday was £4k so it ended up saving him £36k

 

[tris-]

im £13 worse off apparently.
thats with an income of zero too.

 

[Chronictank]

I have no idea how it works, but my sisters husband is a manager for a fairly large building firm. So they sort his accounts for him and he pays less tax than me! and i earn less than half why he does
I believe they get 35/36k or something as their base pay, and the rest is given by other means so it has very little tax paid on it
I am a bit of s impleton when it comes to this sort of thing ><

 

[Marc]

I have no idea how it works, but my sisters husband is a manager for a fairly large building firm. So they sort his accounts for him and he pays less tax than me! and i earn less than half why he does
I believe they get 35/36k or something as their base pay, and the rest is given by other means so it has very little tax paid on it
I am a bit of s impleton when it comes to this sort of thing ><

He will get a wage amounting to his personal allowance, with the rest upto £30k in dividends which basically works out that you pay no tax on £36k income (anymore than £30k a year in dividends and you will be taxed). This can only happen if you are a shareholder of the company. Most companies cant be arsed to set up every employee who earns £36k a year as a shareholder and why should they gifts shares to someone in their company for nothing? Especially so if its a good business and worth lots on paper.

 

[Ezteq]

i asked B2 to explain it to me

and when i woke up it was all dark out side

 

[Chronictank]

i asked B2 to explain it to me

and when i woke up it was all dark out side

he proabably started off explaining, when you zoned out went and played on his xbox then got back just in time for you to come back round

 

[Dahakon]

wow! this is such a left wing policy, as you would expect from a Labour government: fuck the poor over to help the rich. Where have all the left wing parties gone in England? they are all fighting for the same centre-right ground, it bloody sucks. =(

 

[haarewin]

64p worse off. in a year. i dont think im massively bothered?
actually, if i add my inflation wage increase, i'm £5.48 better off. oh well!

 

[collegien]

Me and the wife work out to be £586 better orf thats a couple fo decent bottles of wine at least

 

[Killswitch]

Just got a payrise today (woohoo!) and with that and the tax changes I'll be a whopping £92 a month better off compared to last year. Which is pretty good, really. I think based on the tax changes alone I'd be £253 a year better off.

 

[tris-]

92 a month is looking at nearly £1000 a year.
i dont know how anyone can frown at that. thats a fucking holiday paid for!

 

[Killswitch]

92 a month is looking at nearly £1000 a year.
i dont know how anyone can frown at that. thats a fucking holiday paid for!

Think the problem is that the payrise was about 3.8% but the cost of living increase (petrol and food and whatnot) is more than that. I'm not complaining at all, compared to teachers, coppers and people like that, it's very generous. I might actually save towards a holiday, now you mention it. I've never actually had one before (except with my folks or visiting my dodgy internet girlfriend in Indianapolis, which wasn't my finest hour. Bloody Mormons!)

lol

 

[Eeben]

(except with my folks or visiting my dodgy internet girlfriend in Indianapolis, which wasn't my finest hour. Bloody Mormons!)

you still owe me some loveing and you travel to indianapolis instead of giveing it to me? ! im shocked!!!

 

[Killswitch]

you still owe me some loveing and you travel to indianapolis instead of giveing it to me? ! im shocked!!!

Was before I got the DAOC bug, otherwise I'd have been off to Denmark and up your trouser-leg before you could say "horny English bloke"

 

[Bugz]

92 a month is looking at nearly £1000 a year.
i dont know how anyone can frown at that. thats a fucking holiday paid for!

A payrise that will soon be wiped out by increased costs in living.

It depends on how often you get them tbh. 3.8% payrise is about the RPI I believe BUT the RPI may go through the fan in the next 10 years or so.

 

[Bahumat]

I will be about £120 better off.
Are they mentioning cars due to the prices of fuel? Cause I catch the train+bus so those prices also increase