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April Tax Shock

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Sorry, if it has been posted before, but couldn't find a thread as such.

http://www.bbc.co.uk/news/business-12714407

The average loss to families will be £200 a year, coming on top of a £680 loss after changes in January, which included the rise in VAT.

As far as National Insurance contributions are concerned, all 29 million employees in the UK will pay an extra 1%.

The employee contribution rate is rising from 11% to 12%.

750,000 more people will pay tax at the higher rate of 40%.

That is because the higher rate threshold has fallen from £43,875 to £42,475.

End of story

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My take from what i read and understand

1. Working is no more a good job in the UK

2. How to loot people who pay genuine tax - policy of govt

3. Strong smell of double depression

4. People slowly moving out of UK

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Sorry, if it has been posted before, but couldn't find a thread as such.

...this one is no longer just a stealth tax ...it's stealth with a double flip-back....

750,000 more people will pay tax at the higher rate of 40%.

That is because the higher rate threshold has fallen from £43,875 to £42,475.

..is it off-set partly by the higher free tax allowance...?

Edited by South Lorne

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UMMM

I beleive this is all part of ( Ian Duncan Smiths ) make work pay policy . Lol

The two taxes the torys have always loved to put up are NI and VAT.

Edited by miko

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...this one is no longer just a stealth tax ...it's stealth with a double flip-back....

..is it off-set partly by the higher free tax allowance...?

no.

6475 + 37400 (this year)

7475 + 35000 (starting April)

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UMMM

I beleive this is all part of ( Ian Duncan Smiths ) make work pay policy . Lol

The two taxes the torys have always loved to put up are NI and VAT.

Median Wage 2010

London = £30,000 p.a.

Sarf East = £25,000

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UMMM

I beleive this is all part of ( Ian Duncan Smiths ) make work pay policy . Lol

The two taxes the torys have always loved to put up are NI and VAT.

NI is Labour's favourite.

In the run-up to the 1997 election, when Blair kept saying "watch my lips, no tax increases", I couldn't believe that the TV interviewers let him get away with it and didn't ask "what about NI?". Sure enough, as soon as they got in, up went NI, bastards :(.

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no.

6475 + 37400 (this year)

7475 + 35000 (starting April)

...that'll put people off looking for promotion ....don't think Governments understand the human psyche...'if there is no ambition there is no future' .... <_<

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NI is Labour's favourite.

In the run-up to the 1997 election, when Blair kept saying "watch my lips, no tax increases", I couldn't believe that the TV interviewers let him get away with it and didn't ask "what about NI?". Sure enough, as soon as they got in, up went NI, bastards :(.

Agreed labour put up NI after getting elected in 1997 after saying they would not.

However when the torys came to power in 1979 NI was 6.75% and vat was 8.5% when the torys left power NI was 10% and Vat 17.5%.

Since being in power this time NI is up 1% matches labours rise over 13 years in one year and Vat is up form 17.5% to 20%.

What makes me laugh when either are in power they always say NI is not tax but when in opposition it is a tax !!

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Agreed labour put up NI after getting elected in 1997 after saying they would not.

However when the torys came to power in 1979 NI was 6.75% and vat was 8.5% when the torys left power NI was 10% and Vat 17.5%.

Since being in power this time NI is up 1% matches labours rise over 13 years in one year and Vat is up form 17.5% to 20%.

What makes me laugh when either are in power they always say NI is not tax but when in opposition it is a tax !!

Employer's NI is the worst as it makes the ignorant believe that it is not a tax paid by them but by their employer. Of course, in reality, the employer's contribution is deducted from the employee's gross salary.

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Employer's NI is the worst as it makes the ignorant believe that it is not a tax paid by them but by their employer. Of course, in reality, the employer's contribution is deducted from the employee's gross salary.

What has always amazzed me is the total uproar when any rise in income tax is mentioned . I remember the debates when the 10p tax rate was scrapped ( it took up half of question time that week ) the papers were going crazy. Then another time a labour MP suggested looking at income tax and haveing a farier spread of how the money was collected i.e. less at the bottom more at the top . Again total uproar and accusations of him wanting to raise income tax blar blar blar , the man had not got his words out before he was hung drawn and quartered without anyone listening to what he was saying . Yet when it comes to NI it gets put up and very little is ever said , it just seems to slip under the raydar.

Ian Duncan Smith on Question time talking about making work pay and putting up tax free allowances and how good that was , yet no one , no one on the panel or in the audience tackled him on the April NI rise . Its unreal .

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What has always amazzed me is the total uproar when any rise in income tax is mentioned . I remember the debates when the 10p tax rate was scrapped ( it took up half of question time that week ) the papers were going crazy. Then another time a labour MP suggested looking at income tax and haveing a farier spread of how the money was collected i.e. less at the bottom more at the top . Again total uproar and accusations of him wanting to raise income tax blar blar blar , the man had not got his words out before he was hung drawn and quartered without anyone listening to what he was saying . Yet when it comes to NI it gets put up and very little is ever said , it just seems to slip under the raydar.

Ian Duncan Smith on Question time talking about making work pay and putting up tax free allowances and how good that was , yet no one , no one on the panel or in the audience tackled him on the April NI rise . Its unreal .

..or the lowering of 40% tax threshold ....

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What has always amazzed me is the total uproar when any rise in income tax is mentioned . I remember the debates when the 10p tax rate was scrapped ( it took up half of question time that week ) the papers were going crazy. Then another time a labour MP suggested looking at income tax and haveing a farier spread of how the money was collected i.e. less at the bottom more at the top . Again total uproar and accusations of him wanting to raise income tax blar blar blar , the man had not got his words out before he was hung drawn and quartered without anyone listening to what he was saying . Yet when it comes to NI it gets put up and very little is ever said , it just seems to slip under the raydar.

Ian Duncan Smith on Question time talking about making work pay and putting up tax free allowances and how good that was , yet no one , no one on the panel or in the audience tackled him on the April NI rise . Its unreal .

I remember when the 10p rate was scrapped, no one took any notice at the time though. I remember because I saw what they had done and was fuming and went around trying to tell people who seemed oblivious. The papers led with the 2p cut which happened simultaneously. It wasn't until months later that the fuss was kicked up about it. A similar thing may happen here when people get wise to it.

Edited by Britney's Piers

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I remember when the 10p rate was scrapped, no one took any notice at the time though. I remember because I saw what they had done and was fuming and went around trying to tell people who seemed oblivious. The papers led with the 2p cut which happened simultaneously. It wasn't until months later that the fuss was kicked up about it. A similar thing may happen here when people get wise to it.

Yes thats right i remember now . The 10p tax rate being scrapped was not picked up right away it was a few months later just before it kicked in that TSHTF ! Im sitting there thinking right great LET THEM HAVE IT when I was watching it on question time and other programmes, but again no one said the obvious which is how high the stoppage rates income tax and ni are at the lower end of earnings it never seems to get enough attention.

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..or the lowering of 40% tax threshold ....

Yes another tax by stealth , plus anyone on the 40% rate will lose family allowance . Heard call me Dave say that they are thinking about allowing unused tax allowances to be transfered from a non working spouce or partner to the working partner if one stays at home to look after children. Funny thing is I remember the torys talking about this in the 80's when they started reducing marrried mans tax allowance. The married mans tax allowance has gone but we are still waiting for the unsed tax allowances to be transfered.

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UMMM

I beleive this is all part of ( Ian Duncan Smiths ) make work pay policy . Lol

The two taxes the torys have always loved to put up are NI and VAT.

The NI is Labour. Actually it's only half the NI rise Darling left us with for this year: Osborne canceled the other half.

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Agreed labour put up NI after getting elected in 1997 after saying they would not.

However when the torys came to power in 1979 NI was 6.75% and vat was 8.5% when the torys left power NI was 10% and Vat 17.5%.

Since being in power this time NI is up 1% matches labours rise over 13 years in one year and Vat is up form 17.5% to 20%.

What makes me laugh when either are in power they always say NI is not tax but when in opposition it is a tax !!

Labour put the 1% NI increase in place before the election.

They also changed my wife's pension age from 60 to 61, just before her 60th birthday.

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Labour put the 1% NI increase in place before the election.

You mean, 2%. And then screamed at the coalition's unfunded giveaway when they reduced it back to 1%.

They also changed my wife's pension age from 60 to 61, just before her 60th birthday.

Long overdue, albeit badly managed.

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This government is taxing people down who are out there trying to work. One of the first lessons in recession 101, is you don't raise taxes in a recession. You lower taxes to stimulate activity. Along with stimulus spending into the economy.

Which Brown did with the VAT cut and raising government spending. But the coalition came in with all these new taxes and that is when gdp growth went negative.

Ed Balls is credibly arguing that we need to get back to the Brown stimulus program, that the coalition plan isn't working.

Edited by aa3

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This government is taxing people down who are out there trying to work. One of the first lessons in recession 101, is you don't raise taxes in a recession. You lower taxes to stimulate activity. Along with stimulus spending into the economy.

Which Brown did with the VAT cut and raising government spending. But the coalition came in with all these new taxes and that is when gdp growth went negative.

Ed Balls is credibly arguing that we need to get back to the Brown stimulus program, that the coalition plan isn't working.

No thats way down the list, one of the first lessons of recession 101 is you build a Surplus during the boom so that you dont risk sov default when you try to stimulate the economy with your surplus.

One of the first lessons of debt cycle depressions 101 is that govts will always do exactly the wrong thing all the way through the boom, (egged on by the voter) and then exactly the wrong thing during the bust (egged on by the voter), ultimately making it at devastating as it could possibly be

Labour low tax :lol::lol::lol: i see you are expanding your comedic vocabulary beyond "lets just print"

Edited by Tamara De Lempicka

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This government is taxing people down who are out there trying to work. One of the first lessons in recession 101, is you don't raise taxes in a recession. You lower taxes to stimulate activity. Along with stimulus spending into the economy.

Which Brown did with the VAT cut and raising government spending. But the coalition came in with all these new taxes and that is when gdp growth went negative.

Ed Balls is credibly arguing that we need to get back to the Brown stimulus program, that the coalition plan isn't working.

Kudos for managing to mention Ed Balls and credibly in the same sentence.

Has it not occurred to anyone that what we need to get back to is a balanced budget and if that results in negative GDP movements the world will not end. The focus on GDP growth is intensely damaging. To boost GDP all the government needs to do is borrow more and spend more. This may be a good idea in the short term,especially if you have been prudent during the good times, but when you have managed to rack up an unsustainable budget deficit and a gargantuan debt it is another step on the road to ruin.

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What has always amazzed me is the total uproar when any rise in income tax is mentioned . I remember the debates when the 10p tax rate was scrapped ( it took up half of question time that week ) the papers were going crazy. Then another time a labour MP suggested looking at income tax and haveing a farier spread of how the money was collected i.e. less at the bottom more at the top . Again total uproar and accusations of him wanting to raise income tax blar blar blar , the man had not got his words out before he was hung drawn and quartered without anyone listening to what he was saying . Yet when it comes to NI it gets put up and very little is ever said , it just seems to slip under the raydar.

Ian Duncan Smith on Question time talking about making work pay and putting up tax free allowances and how good that was , yet no one , no one on the panel or in the audience tackled him on the April NI rise . Its unreal .

This is the problem. Politicians seem to believe that raising income tax is politically impossible, so we end up in a situation where we have more and more 'stealth' taxation going on to try and avoid it.

And of course, VAT is highly regressive since is hits the less well off who spend the vast majority of their income. NI is also fairly regressive (although is this subject to change?) since it only applies to the first 45k or so, I believe.

I'd be tempted to scrap NI and VAT (VAT especially seems subject to fraud leakage anyway) and hike income tax rates to compensate. Would certainly be a surprise..

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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