Budget

[Firestorm]

time to pack the fags up I reckon

5% above inflation rise from 6 tonight, So thats about 8% or 56P on a 7 quid packet !!

Good to see the tax loophole for high end property has been closed though, In the multitude of RM threads I have mentioned that its cheaper for a company to own a building than to pay the 7% stamp duty when buying , thats been slammed shut "The stamp duty rate on properties worth more than £2m via companies will be raised to 15%"

However, may an have an impact on Property developers

 

[Earls Hall Blue]

£7.50 a pack now..:stunned:

Glad I kicked it 3 years ago..:smile:

 

[canveyshrimper]

They are saying about 37p on a packet of 20, I'm glad I gave up when you stopped bringing your lighter to games Gary.

Increase of Income Tax threshold to £9205 which comes into effect in April 2013.
No increase in taxes on alcohol, and vehicle excise duty to rise by inflation, but not for road hauliers.

 

[Firestorm]

They are saying about 37p on a packet of 20, I'm glad I gave up when you stopped bringing your lighter to games Gary.

Increase of Income Tax threshold to £9205 which comes into effect in April 2013.
No increase in taxes on alcohol, and vehicle excise duty to rise by inflation, but not for road hauliers.

I saw that 37p I can only assume that they are basing that on the budget brands because that is only just above 6% on a 6 quid packet, which would put inflation at 1% and I am sure I saw yesterday that it went down to 3.4%

 

[canveyshrimper]

I saw that 37p I can only assume that they are basing that on the budget brands because that is only just above 6% on a 6 quid packet, which would put inflation at 1% and I am sure I saw yesterday that it went down to 3.4%

I saw the 37p on the BBC web site, but you're quite right about the inflation mark being around 3.4%.

 

[Firestorm]

my mistake , the duty on fags will rise by 5% above inflation, as a sizable chunk of the price is already duty, thatbit will not be subject to the 8% increase

 

[Davros]

hopefully they will raise the starting level of the 40% tax rate as of next year, as at the moment it falls in line with the raising of the personal allowance, which is pushing lots of people on middle saleries into a high tax bracket, which is massivly disproportionate in terms of wealth. £43k a year is certainly not a massive amount to be earning, especially if you are in a single salary household where the other half is brining up a child for example, with an average mortgage. (and go above £50k and lose your child benefit!)

Yet again, another budget that helps the poor, appears to help the rich, and yet squeezes the middle.

 

[Pubey]

hopefully they will raise the starting level of the 40% tax rate as of next year, as at the moment it falls in line with the raising of the personal allowance, which is pushing lots of people on middle saleries into a high tax bracket, which is massivly disproportionate in terms of wealth. £43k a year is certainly not a massive amount to be earning, especially if you are in a single salary household where the other half is brining up a child for example, with an average mortgage. (and go above £50k and lose your child benefit!)

Yet again, another budget that helps the poor, appears to help the rich, and yet squeezes the middle.

I think that's a pretty decent interpretation.

The main disappointment is that the fag tax isn't higher.

 

[Mad Cyril]

I would like to see a tax on vicious looking dogs.

 

[WightShrimper]

hopefully they will raise the starting level of the 40% tax rate as of next year, as at the moment it falls in line with the raising of the personal allowance, which is pushing lots of people on middle saleries into a high tax bracket, which is massivly disproportionate in terms of wealth. £43k a year is certainly not a massive amount to be earning, especially if you are in a single salary household where the other half is brining up a child for example, with an average mortgage. (and go above £50k and lose your child benefit!)

Well **** me, that's a sort of wage I have only dreamed of. In 35 years of working, I have never got above 18 grand (and with very little government support outside of that towards my family!)

 

[Davros]

I think that's a pretty decent interpretation.

The main disappointment is that the fag tax isn't higher.

I am also of the thought that says if your missus gives up work to take on the kids, while you work, you should be allowed to inherit her Personal Tax Allowance for the year. They need to try and do something to show they support marriage!

 

[Another Surrey Shrimper]

hopefully they will raise the starting level of the 40% tax rate as of next year, as at the moment it falls in line with the raising of the personal allowance, which is pushing lots of people on middle saleries into a high tax bracket, which is massivly disproportionate in terms of wealth. £43k a year is certainly not a massive amount to be earning, especially if you are in a single salary household where the other half is brining up a child for example, with an average mortgage. (and go above £50k and lose your child benefit!)

Yet again, another budget that helps the poor, appears to help the rich, and yet squeezes the middle.

The amount that you start paying 40% tax is being reduced, which I assume is to balance out getting rid of the 50% rate and means those earning a touch over £40k will be paying more and those earning over £150k will be paying less.

 

[Davros]

In principle it sounds a lot (and i wish i earned that much as well), but if you break it down for example someone working in London...

£43K less tax & NI = roughly £30k = £2500 a month

Less travel @ £320 pcm
Less Mortgage @ £900 (based on a £170k mortgage @ 4%)
Less pension contrib @ 5% (which is what gov say you need to have by 2016) £100 (with tax reclaimed)

leaves you with £1180 a month to feed, cloth and look after 3 people as well as pay the rest of your bills, put fuel in your car etc. That assuming you only have the one kid! Fair enough more than some people have to survive on, but hardly what anyone would class as 'rich'!

 

[Davros]

The amount that you start paying 40% tax is being reduced, which I assume is to balance out getting rid of the 50% rate and means those earning a touch over £40k will be paying more and those earning over £150k will be paying less.

No, the 40% rate coming down is to account for the starting rate increasing. ie from this April the Personal allowance increases by £630 (from £7475 to £8105), and so that 40% threshold reduces by £630 (£35000 to £34370), and therefore the gain at the bottom of £126 is lost at the top.

In effect people earning over £100k are not affected by this as once you earn over £100k you lose all of your personal allowance anyway!! In effect a pay rise from £99999 to £100500 would lose you money!

 

[blues_r_best]

In effect people earning over £100k are not affected by this as once you earn over £100k you lose all of your personal allowance anyway!! In effect a pay rise from £99999 to £100500 would lose you money!

I thought your personal allowance is reduced by £1 for every £2 over the £100,000, so to lose your whole PA you'd need to earn at least £116210.

 

[Davros]

I thought your personal allowance is reduced by £1 for every £2 over the £100,000, so to lose your whole PA you'd need to earn at least £116210.

good point, my bad

 

[Napster]

In principle it sounds a lot (and i wish i earned that much as well), but if you break it down for example someone working in London...

£43K less tax & NI = roughly £30k = £2500 a month

Less travel @ £320 pcm
Less Mortgage @ £900 (based on a £170k mortgage @ 4%)
Less pension contrib @ 5% (which is what gov say you need to have by 2016) £100 (with tax reclaimed)

leaves you with £1180 a month to feed, cloth and look after 3 people as well as pay the rest of your bills, put fuel in your car etc. That assuming you only have the one kid! Fair enough more than some people have to survive on, but hardly what anyone would class as 'rich'!

£1180 a month is more than enough to do that. Heck you could do that on £800 a month, and stick a grand in savings.

 

[Napster]

By the way, I thought it was a bit boring. Good to see the forecasts are better.

 

[davewebbsbrain]

In principle it sounds a lot (and i wish i earned that much as well), but if you break it down for example someone working in London...

£43K less tax & NI = roughly £30k = £2500 a month

Less travel @ £320 pcm
Less Mortgage @ £900 (based on a £170k mortgage @ 4%)
Less pension contrib @ 5% (which is what gov say you need to have by 2016) £100 (with tax reclaimed)

leaves you with £1180 a month to feed, cloth and look after 3 people as well as pay the rest of your bills, put fuel in your car etc. That assuming you only have the one kid! Fair enough more than some people have to survive on, but hardly what anyone would class as 'rich'!

Who earns £43k tho

 

[Yorkshire Blue]

In principle it sounds a lot (and i wish i earned that much as well), but if you break it down for example someone working in London...

£43K less tax & NI = roughly £30k = £2500 a month

Less travel @ £320 pcm
Less Mortgage @ £900 (based on a £170k mortgage @ 4%)
Less pension contrib @ 5% (which is what gov say you need to have by 2016) £100 (with tax reclaimed)

leaves you with £1180 a month to feed, cloth and look after 3 people as well as pay the rest of your bills, put fuel in your car etc. That assuming you only have the one kid! Fair enough more than some people have to survive on, but hardly what anyone would class as 'rich'!

That's £13k that individual is paying in income tax a year. That's enough to employ an individual for a year!

And that's only income (and NI). On top of that they'll likely be paying circa £1k council tax. They'll be paying 20% on pretty much all purchases (VAT) - if they operate at break even and spend that all on VAT-able items that's an extra £6k. That works out at roughly £20k a year in tax.

If they then put in extra effort at work and earn some overtime or a bonus, the tax man then takes 40p of every additional £1 earnt.

And that's before the behaviour modifier taxes on alcohol, cigarettes, petrol, flights etc

If they drink it's around 50p per pint in duty. On a pack of cigarettes over £4 of it's just tax. On a tank of petrol it's something like £40.

It really is extraordinary the amount of tax that is paid.