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40% Tax Bracket To Kick In At 42K, Lower Than Last Year


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#1 Realistbear

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Posted 03 December 2010 - 08:26 PM

http://www.telegraph...r-rate-tax.html

700,000 more to pay higher-rate tax
More than 700,000 people will pay a higher rate of income tax after the Treasury confirmed it was lowering the threshold at which the 40 per cent rate is levied.

This tax year all earnings above 43,875 are taxed at 40 per cent. But from next April this threshold will be lowered to 42,475, the Treasury has now confirmed.

Mr Warburton said: "I'm all in favour of raising the lower threshold. But the Koalishon was desperate not to be seen benefiting the middle classes. The threshold at 42,475 is only 1.6 times average earnings, which many people will consider a relatively low income to pay such a high rate of tax."

Not only will there be more people paying the 40p rate of tax, but they will also be hit by raising of the National Insurance rate. Previously employees earning the 40p tax rate paid 11 per cent National Insurance. This will increase to 12 per cent.



At least CGT is being kept super low to protect the property speculators investors.
CRIMBOCASTS for y/e 2013

1. The Euro will have another bad year and may hit parity with the US$ before the end of the year.
2. The Pound will not move much against the dollar (range 1.47-1.60) but is likely to regain a lot of ground verses the Euro which may not survive. US $ will be a safe bet, especially ST bonds and large caps.
3. Stocks should finish moderately higher than 2012 barring a war with Korea and Iran.
4. Gold will not be flying to the moon (again) and will bitterly disappoint (again) any who got in during the run up in 2011.
5. House prices: Flattish to up single digits overall..
6. Not much in the way of inflation again this year--those who forecast hyperinflation will be proven wrong (again--as in 2011 and 2012)
7. Could see a snap GE after the May elections which will be the worst result EVER for Dave. UKIP continue to make headway and will be number 3 before year end.

#2 nohpc

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Posted 03 December 2010 - 08:31 PM

not really a significant amount of money to those of us earning more than 42k.

If I knew my taxes were being spent wisely I'd be very happy to pay a lot more like in scandinavia.

#3 Realistbear

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Posted 03 December 2010 - 08:36 PM

not really a significant amount of money to those of us earning more than 42k.

If I knew my taxes were being spent wisely I'd be very happy to pay a lot more like in scandinavia.



The Skandys have a decent health service and they look after their olduns. We are a very primitive society compared with the Norsemen.

The FIFA fiasco has me convinced that we think a little too highly of ourselves. Seeing Willers and DC grovelling over a footy match confirms to me that we are going down. Slower than most gvien the resileince of our HPI and bnd market. But going down nonethless.

Edited by Realistbear, 03 December 2010 - 09:00 PM.

CRIMBOCASTS for y/e 2013

1. The Euro will have another bad year and may hit parity with the US$ before the end of the year.
2. The Pound will not move much against the dollar (range 1.47-1.60) but is likely to regain a lot of ground verses the Euro which may not survive. US $ will be a safe bet, especially ST bonds and large caps.
3. Stocks should finish moderately higher than 2012 barring a war with Korea and Iran.
4. Gold will not be flying to the moon (again) and will bitterly disappoint (again) any who got in during the run up in 2011.
5. House prices: Flattish to up single digits overall..
6. Not much in the way of inflation again this year--those who forecast hyperinflation will be proven wrong (again--as in 2011 and 2012)
7. Could see a snap GE after the May elections which will be the worst result EVER for Dave. UKIP continue to make headway and will be number 3 before year end.

#4 South Lorne

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Posted 03 December 2010 - 09:01 PM

...at 1.6 times average income the new 42,000 threshold for higher tax is being applied to people on relatively modest income which means the recent top rate of 50% should be applied lower down the current scale to even up the trough and attract some needy additional income for balancing the annual deficit.....lets get the books balanced...... :rolleyes:
The market goes up. The market goes down. It is all about timing. (unless it's rigged)

#5 fellow

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Posted 03 December 2010 - 09:04 PM

Is this because wages are falling?

#6 Meat Puppet

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Posted 03 December 2010 - 09:06 PM

Tax credits, both working and child, and a 16 hour work week are looking better all the time.

Anyone know if you can still get those even if you have loads of assets?
"As a nation of freemen, we must live through all time, or die by suicide", Abraham Lincoln

#7 South Lorne

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Posted 03 December 2010 - 09:08 PM

Is this because wages are falling?


...no ...to adjust for the 1,000 rise to the tax free threshold ...current Government does not wish to be seen to be helping the middle classes ....thus the adjustment at the other end to help even.....I don't think they wish to be voted back in after this little jaunt..... :rolleyes:
The market goes up. The market goes down. It is all about timing. (unless it's rigged)

#8 Self Employed Youth

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Posted 03 December 2010 - 11:36 PM

Bring in a 60 and 70% rate for the higher bands. And bank bonuses @ 80
Have I not reason to lament what man has mas made of man?

Initially 'Unemployed Youth'
Then 'Formerly Unemployed Youth'
Then 'Unemployed Again Youth'
Hopefully soon to be 'Employed Again Youth' and not long after that I'll be eligible for working tax credits, if not I'll at least get adult rate dole and maybe car insurance will be potentially affordable!

#9 PricedOutNative

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Posted 03 December 2010 - 11:46 PM

I guess that's more people no longer entitled to child benefit....
Fiscal drag at it's best...

#10 8 year itch

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Posted 04 December 2010 - 12:03 AM

I guess that's more people no longer entitled to child benefit....
Fiscal drag at it's best...

That's the kicker. Cunnts

There is no ladder.

JY


No need to sell up, the next phase of the economics cycle is going to be very positive for anyone that owns property.

All I'm sayings is, don't listen to the property bears people, they are wrong.


#11 ken_ichikawa

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Posted 04 December 2010 - 12:05 AM

The Skandys have a decent health service and they look after their olduns. We are a very primitive society compared with the Norsemen.

The FIFA fiasco has me convinced that we think a little too highly of ourselves. Seeing Willers and DC grovelling over a footy match confirms to me that we are going down. Slower than most gvien the resileince of our HPI and bnd market. But going down nonethless.



Except sweden is Harriet harman's feminist Soviet utopia. Kind of like Saudi Arabia but backwards but worse! A lot of people joke about sex and written contracts, they dont joke about it so much in Sweden.

#12 ZeroSumGame

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Posted 04 December 2010 - 12:20 AM

Tax credits, both working and child, and a 16 hour work week are looking better all the time.
Anyone know if you can still get those even if you have loads of assets?


Yes. It's an income based relief.
You'll get it up to a very considerable income of 50K per annum :blink: - tapered of course.

I guess you've never visited HMRC.gov.uk but thereon you'll find a calculator to work out precisely where you'd stand.


IMHO - if you've got a shed load of assets, get your feet up and go for that 16 hour week.



#13 newbonic

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Posted 04 December 2010 - 12:26 AM

Tax credits, both working and child, and a 16 hour work week are looking better all the time.

Anyone know if you can still get those even if you have loads of assets?


Pretend you've blown your cash assets on whores, gambling and drugs, while secretly buying PMs and hiding them in the loft. Then as long as your only visible assets are your house you should be ok. :P
"There are only two basic items in the world economy - food and fuel. All the rest are secondary...there is no substitute for energy; the whole edifice of modern life is build upon it." E F Schumacher

#14 libspero

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Posted 04 December 2010 - 01:17 AM

I believe that's on top of the tax-free allowance though.. so you really need to be earning over about 50k before you actually start paying it.

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#15 crash2006

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Posted 04 December 2010 - 05:55 AM

http://www.telegraph...r-rate-tax.html

700,000 more to pay higher-rate tax
More than 700,000 people will pay a higher rate of income tax after the Treasury confirmed it was lowering the threshold at which the 40 per cent rate is levied.

This tax year all earnings above 43,875 are taxed at 40 per cent. But from next April this threshold will be lowered to 42,475, the Treasury has now confirmed.

Mr Warburton said: "I'm all in favour of raising the lower threshold. But the Koalishon was desperate not to be seen benefiting the middle classes. The threshold at 42,475 is only 1.6 times average earnings, which many people will consider a relatively low income to pay such a high rate of tax."

Not only will there be more people paying the 40p rate of tax, but they will also be hit by raising of the National Insurance rate. Previously employees earning the 40p tax rate paid 11 per cent National Insurance. This will increase to 12 per cent.



At least CGT is being kept super low to protect the property speculators investors.


Been going on about this they have been getting away paying into a system which they pushed into debt.
Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world.
Privatize the profits socialize the losses.
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what i think the coming year will bring
">
http://william-king....money/MOH1.html

i'm an economic prop3rty expert

We did'nt see this coming

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