Jump to content
House Price Crash Forum
Sign in to follow this  
fru-gal

Budget July 2015 Predictions?

Recommended Posts

Osborne is an uber Keynesian masquerading as a sado-monetarist. The pretence of austerity will be kept up by a firesale of remaining UK assets, so he can carry on spending wildly while advertising the preposterous notion that he's 'fixing the roof' .

Share this post


Link to post
Share on other sites

More cuts. More tax.

Generally more of the same I would guess.. gradual squeeze on (real) government spending, no major changes to tax policy.

Share this post


Link to post
Share on other sites

He'll announce that he's bought the Port of Piraeus.

Im expecting the Help To Live scheme whereby we all guarantee the banks all our money forever and in return they let us exist.

Share this post


Link to post
Share on other sites

My predictions;

Cuts to tax credits and housing benefits. Possibly either limiting TC to 2 children or tapering after the second. Cuts to WTC or making it harder to claim (more hours needed to qualify). Housing benefit cut to under 25s and single room rate increased to age 50. Benefit cap lowered to £23k. Possible regional benefit cap lower than London.

Possible changes to non-dom rules (increased levy), CGT levels increased possibly to match income tax levels for higher rate taxpayers. Possible removal of BTL interest tax breaks.

Share this post


Link to post
Share on other sites

Steal from the poor & give to his rich mates of course.

Not sure whether you're joking or not?

Personal allowances for low earners have almost doubled over the past 4-5 years. If you earn less than £10,600 you only pay NI.

On the other hand high earners seem to be paying more..

“In the last tax year, the richest were shouldering a greater share of the burden than any time in history,” said Mr Nelson. “And this was achieved after the top rate of income tax was reduced from 50p to 45p in April 2013

http://www.telegraph.co.uk/finance/personalfinance/tax/11233686/How-top-3000-earners-pay-more-tax-than-bottom-9-million.html

Share this post


Link to post
Share on other sites

Not sure whether you're joking or not?

Personal allowances for low earners have almost doubled over the past 4-5 years. If you earn less than £10,600 you only pay NI.

On the other hand high earners seem to be paying more..

http://www.telegraph.co.uk/finance/personalfinance/tax/11233686/How-top-3000-earners-pay-more-tax-than-bottom-9-million.html

Or alternatively from yesterday the poor pay 37% of their income in taxes and the rich pay 34%.

http://www.independent.co.uk/news/uk/politics/the-graph-that-shows-how-the-poor-are-paying-more-than-the-rich-in-tax-10353982.html

Edited by Timak

Share this post


Link to post
Share on other sites

Or alternatively from yesterday the poor pay 37% of their income in taxes and the rich pay 34%.

http://www.independent.co.uk/news/uk/politics/the-graph-that-shows-how-the-poor-are-paying-more-than-the-rich-in-tax-10353982.html

From your link..

However, in the five years since David Cameron became Prime Minister, the tax burden between rich and poor has narrowed. In the first year of the coalition the poorest fifth of households paid 38.2 per cent of their income to the taxman, with the richest fifth paid just 33.6 per cent.

I would also suspect tax breaks like tax credits are't factored into those figures.

Share this post


Link to post
Share on other sites

From your link..

I would also suspect tax breaks like tax credits are't factored into those figures.

It depends what you define as "poor". These days the word "poor" is used describe households with several kids, where one parent works part-time on minimum wage, topped up by a plethora of benefits. Ironically they end up being less poor than a "rich" middle class equivalent family with one full time earner on £50k.

Share this post


Link to post
Share on other sites

Reducing the 45pc tax rate down to 40pc, or changing the threshold to £250k or something like that. Which I don't necessarily disagree with; not sure if he'll have the balls to do it though.

Share this post


Link to post
Share on other sites

I wonder about something with BTL, given the frequent articles.

There is the argument that loads of MPs are landlords themselves, but a significant proportion will also have been affected by other things they voted for, such as the pension annual/lifetime allowances.

Share this post


Link to post
Share on other sites

I wonder about something with BTL, given the frequent articles.

There is the argument that loads of MPs are landlords themselves, but a significant proportion will also have been affected by other things they voted for, such as the pension annual/lifetime allowances.

Most of the MP landlords are not really landlords in the normal sense, they merely swap properties with each other so that they can claim they are tenants then put it on expenses. They are not necessarily landlords renting properties to the public.

Share this post


Link to post
Share on other sites

Big changes to Working tax credit.He will lower the amount, and also from where it starts to be means tested so that nobody on NMW x 30 gets it.Its a much bigger cut than cutting child tax credits,but he can sell it much easier.

Tax credits for first child left alone,but cut back to £38 for child two and three.Three child limit introduced.Clawback rate increased to 43%.Couples minimum hours increased to 32.Single parent increased to 21 once child 5,30 once child 13.Include all assets for means test including housing equity.Haha should but wont.

Housing benefit single room rate increased to 50 or even 60 and to include social housing but exclude sheltered housing.Housing benefit reduced to 90% so everyone pays at least 10% of rent.Local housing allowance reduced to bottom 20% quartile.Means testing kicks in from £3500 a year.

ESA and JSA means tested from three months.

Share this post


Link to post
Share on other sites

Big changes to Working tax credit.He will lower the amount, and also from where it starts to be means tested so that nobody on NMW x 30 gets it.Its a much bigger cut than cutting child tax credits,but he can sell it much easier.

Tax credits for first child left alone,but cut back to £38 for child two and three.Three child limit introduced.Clawback rate increased to 43%.Couples minimum hours increased to 32.Single parent increased to 21 once child 5,30 once child 13.Include all assets for means test including housing equity.Haha should but wont.

Housing benefit single room rate increased to 50 or even 60 and to include social housing but exclude sheltered housing.Housing benefit reduced to 90% so everyone pays at least 10% of rent.Local housing allowance reduced to bottom 20% quartile.Means testing kicks in from £3500 a year.

ESA and JSA means tested from three months.

I'd guess couples min hours to 35 or maybe 20 hours each.

I'd guess a change when youngest starts school, but not 100% what the change will be.

Maybe a bump up to 35h work each.

I reckon the messing with the HB percentiles will end up reducing LHAs by about 10%.

The political trick is making sure that people have to work more hours for tax credits, reducing the tax credits.

Harperson was banging on about reducing money to 'hard working, poor families'

Bumping up the hours ensure that tax credit people get close to being hard-working, and reducing the money paid out by the NMSxhours worked.

Share this post


Link to post
Share on other sites

Higher rate relief on pension contributions to go....the "we're all in it together" piece to smokescreen a reduction in higher rate tax, increases in hours to 21 hours pwk for tax credit. Child tax credit frozen...will not put a limit on size of families ("will not penalise the child").

Hargreaves Landsdown have sent me numerous emails about this. "In their manifesto, the Conservatives pledged to reduce the tax relief on pension contributions for anyone earning more than £150,000."

So it seems pretty likely for top rate tax payers. I'm not sure higher rate tax payers will get cut just yet, but probably in a future budget.

Maybe they will reduce the £40K annual allowance as well.

Annoying because it is the only "benefit" that I claim and I do so in order to be self-sufficient in retirement.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   225 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.