The Budget

Now I'm not an expert such matters, but to me it seemed pretty cr@p - very little gain for anyone. I'm definitely no left-winger but how is abolishing the 10p tax rate going to help anyone?

Please excuse me if I've made some economics/financial faux pas, these observations have been made with very little experience of tax.[:I]

VS.

P.S. didn't want to hijack Budget APD thread, so started new one

[Decker]

Well it's the first budget I can remember whwere ostensibly I'll be better off after it!

[Scrooge]

Originally posted by Decker
Well it's the first budget I can remember whwere ostensibly I'll be better off after it!

Funny, I thought the only people who are better off after a budget are those making lot's of money...good for you Mr D

Well I took a shot at reading the darn thing..now I have a headache.

[Decker]

nah I just used Crapita's web site which has a calculator for these things. Not actually read it Best gains SEEM to be for those between 30 and 50K pa

[Scrooge]

wow, thats amazingly fair for once

A labour MP - who was trying to put the best spin on things - said on Radio 5 that a married couple where there was a single earner ( earning around £27k p.a.) with 2 children would be better off to the tune of £500 per year - and this was the best he could come up with!!

I guess - as ever - it depends upon what you do and which bits affect you personally!!

Funny how Brown makes the headline grabbing offer of 2p off income tax just before he runs for leader ( and PM ) of the labour party!!!

Politics - cynical - nah!![n]

Originally posted by MarkJ
A labour MP - who was trying to put the best spin on things - said on Radio 5 that a married couple where there was a single earner ( earning around £27k p.a.) with 2 children would be better off to the tune of £500 per year - and this was the best he could come up with!!

I guess - as ever - it depends upon what you do and which bits affect you personally!!

Funny how Brown makes the headline grabbing offer of 2p off income tax just before he runs for leader ( and PM ) of the labour party!!!

Politics - cynical - nah!![n]

But does that figure take in the increases in Council tax and the APD for the yearly holidays I wonder, or just the announcements from this budget?
Did it also include is the family had an MPV under three years old, or one of the other non 4X4's in the top tax band rate?
I thought this was an interesting statement from the SMMT:-

"BUDGET: Cynical gesture politics says SMMT
THE SMMT estimates a bonanza of £44.5m for number 11 Downing Street over the next two years through changes to vehicle excise duty announced in today's budget.(VED) that will raise the annual charge for band G cars by 90 per cent.

The Society said that UK chancellor, Gordon Brown, was trying to 'out-green' the Tories - and boost government coffers by sending road tax for higher emitting cars through the roof. The band covers all new cars emitting more than 225 g/km CO2, half of which are not 4x4s.

"The chancellor and the green lobby may have convinced the public that this will affect rich drivers in central London," said SMMT chief executive, Christopher Macgowan. "The truth is that many thousands of people across the UK who rely on larger-engined vehicles, like families, farmers and small business people, face another hike in motoring bills in the years to come."

The Society said that the motor industry is not opposed to CO2-based taxation. In the last five years, strong signals on company car tax, vehicle excise duty and fuel tax (the lion's share of annual motoring costs), have helped support manufacturers' investment to bring lower carbon cars to market.

"We have called for stability, clarity and a long-term approach to CO2-based taxation," said Macgowan (pictured). "What we heard today was the opposite. This is gesture politics at its most cynical."
176,141 new cars were sold in 2006 with emissions above the current band G rate, 225 g/km. Of these 90,302 (51%) were 4x4s

Examples of the type of larger family cars that will also be hit by changes announced in the budget include Vauxhall Zafira people carrier (2.0 litre petrol), Renault Espace people carrier (2.0 litre petrol), Peugeot 407 estate (2.2 litre petrol), Honda Accord estate (2.4 litre petrol), Ford Mondeo estate (2.0 litre petrol) "

Personally, I think I may be marginally better off, ONCE, that is, all of these changes come into effect. 2p cut from next April, NI changes from 2009. Inheritance tax? Yeah the threshold's going up, but not until 2010. What's the point in announcing in the 07 budget so many changes that won't happen for a year or more? Unless, that is, you're planning on being PM some time soon. But then what a crock to abolish the 10p rate! And, pray tell, when will this be abolished from...?

Thankfully, I'm relieved that at long last the Great British Public are finally waking up to the fact that this whole government are about spin, headline-grabbing and insubstantial policies. And I don't think either our Tone or Gordy are fooling many people anymore.

Oh yeah, and thanks a bundle Gordon for the cut in corporation tax. Just a shame you're reaping it back for us poor sods in smaller businesses by increasing our companies tax by 3%!

The unfortunate response to an increase in tax like the 3% increase in Corporation Tax for small businesses is that it will simply enlarge the black economy. Small business owners (not all) will put less turnover through the books, thus evading VAT, CT, PAYE, NIC. They will do this to the extent so that they are unaffected by the 3% increase.

A labour MP - who was trying to put the best spin on things - said on Radio 5 that a married couple where there was a single earner ( earning around £27k p.a.) with 2 children would be better off to the tune of £500 per year - and this was the best he could come up with!!

Homer £500 whoohooo,doh V8 car

Originally posted by jaguarpig

A labour MP - who was trying to put the best spin on things - said on Radio 5 that a married couple where there was a single earner ( earning around £27k p.a.) with 2 children would be better off to the tune of £500 per year - and this was the best he could come up with!!

Homer £500 whoohooo,doh V8 car

:D:D

Originally posted by Decker
Well it's the first budget I can remember whwere ostensibly I'll be better off after it!

True for me too. And a good thing to recognise that some taxes need to go down, even if on this occassion they're broadly level overall.

What incomes did the 10p rate used to cover?

VS.

[Bazz]

I quick press of the calculator keys seems to indicate that to benefit from the 2p reduction from 22p to 20p after allowing for the abolition of the 10p basic rate, you need to earn £10,750 of taxable income before you start to be better off.

So for those on low incomes, if you add £10,750 to whatever your personal allowances are, that will represent the threshold where you start to be better off.

I hasten to add this is only taking into account the changes in PAYE and does not allow for the changes in NI or any other tax changes in the budget.

I also hasten to add that after a few glasses of red, my dexterity with the calculator may (and probably should) be called into question. [Hic!]

[Neil]

Once again, thanks to a Mr Brown budget we (t'other half and I} will be worse off again, shock horror (this despite me just changing to a less co2 emitting car). I do wonder sometimes why we bother and if we'd be better off earning less or having a few kids, as this seems to be the only way you get any help from the Government. We just seem to be hit every time for working hard and trying to enjoy ourselves, and not even in a particularly OTT way at all [:(!]