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The mkiv Supra Owners Club

new budget... income tax


cookci

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Everyone's saying the basic has reduced to 20%, but forget that the 10% bracket is being abolished.

 

cookci: Anything you earn up to £5010 is tax free. Then you get £2150 (I think) at 10% tax, then up to £36k or so at 22%, then 40%

 

As from April 2008:

 

The £2150 will now be taxed at 20%, and then up to £40k or so will all be 20%, then 40%

 

So if you earn £14k now, £5K is free, then you pay approx £215 + £1507 = approx £1722 in tax per year

 

From 2008 you'll get £5k free, then £9k at 20% = £1800.

 

so basically, you may pay £80 MORE per year.

 

I'm actually going to be better off, as the amount I pay in the 22% bracket is more.

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Everyone's saying the basic has reduced to 20%, but forget that the 10% bracket is being abolished.

 

cookci: Anything you earn up to £5010 is tax free. Then you get £2150 (I think) at 10% tax, then up to £36k or so at 22%, then 40%

 

As from April 2008:

 

The £2150 will now be taxed at 20%, and then up to £40k or so will all be 20%, then 40%

 

So if you earn £14k now, £5K is free, then you pay approx £215 + £1507 = approx £1722 in tax per year

 

From 2008 you'll get £5k free, then £9k at 20% = £1800.

 

so basically, you may pay £80 MORE per year.

 

I'm actually going to be better off, as the amount I pay in the 22% bracket is more.

 

just like a maths lesson back at school :) ;)

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:yeahthat: As usual they've juggled the tax from one hand to the other and the majority of people seem to have fallen for it.

 

Errr - isn't that the whole point? That's why the budget has to be balanced. The only difference from term to term, budget to budget is who the current government decide to target.

 

If you want across the board tax cuts, you'd have to expect across the board spending cuts to match. So you'd need the NHS abolished or all public transport privatised or something if you truly want tax cuts.

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Errr - isn't that the whole point? That's why the budget has to be balanced. The only difference from term to term, budget to budget is who the current government decide to target.

 

If you want across the board tax cuts, you'd have to expect across the board spending cuts to match. So you'd need the NHS abolished or all public transport privatised or something if you truly want tax cuts.

 

I'd vote for those policies :thumbs: don't get anything for all the tax I pay. Unfortunately (reasonably) well paid, single people get nothing in this country, we just pay in :(

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I'm happy CGT allowance increased slightly. I now want my house sale to occur after April 6th - combined with the slightly increased allowance and the fact that it's a new financial year, my CGT drops from £845 to £375. Not bad for a £134K sale!

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Only good thing to come out of this budget is that hopefully it will ensure that Gordon (smug bastard) Brown will never realise his ambition and become prime minister .

 

God help us if he ever does :(

Unfortunately it looks as if he will. If Labour vote him in as their Leader I think he's got a couple of years before he needs to call an election. :(

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I should be £7 a month better off on the tax side. Whoopee!!

 

Watching his budget broadcast last night, going on about families and shit; me and my girlfriend, both working full time (and looking for part time work to add on), paying a mortgage, don't claim anything, dont smoke or drink: We worked out we'd be better of if we have kids! Preferably 2!!! WTF is that about. :looney:

We're actually considering having children now, we don't want any and no doubt I'd treat them really badly because I really don't want to be a dad, but life is so tough as it is it's the best option for us. :(

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I'm apparently going to be about £190 a year better off - which is surprising, because I'm in the salary band that they keep saying wasn't really affected. I think the fact that I don't drink / smoke probably helps. Wasn't sure I got the fuel estimation right either.

 

But who cares - I got told my payrise today. Not life changing but better than it has been for a few years now.

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