Income Tax bands

[ERICSMUM]

Originally Posted by MinniMouse

All the above if you live in England.

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Sorry yes I should have said I’m in England.

[Pumpkin Pie]

Originally Posted by 123

It's the price of devloution. If Scotland hadn't asked (and been granted) the right to devolved government they wouldn't be paying anymore than anyone else.

The moral of this story is - "be careful what you ask for, you might get it and not like it"

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There are two sides to the coin though. Free university education, Prescriptions, no road tolls etc.

[123]

Originally Posted by Pumpkin Pie

There are two sides to the coin though. Free university education, Prescriptions, no road tolls etc.

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Very true, as with everything, some win, some lose.

[Guest]

That's the case for now but interesting to see what is announced for England on weds.

[400ixl]

Originally Posted by 123

I'm always shocked by these two statistics:

The top 1% of earners in the UK now account for more than a third of income tax paid to the government, following changes over the past decade that have left almost half the population exempt from making payments.

In research underlining the dual nature of Britain’s income tax structure, the Institute for Fiscal Studies said above-inflation increases in the personal allowance to £12,500 a year meant 42% of adults paid no income tax.

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The taxation system is often not an even playing field when you look past the individual income.

A household could have an income of say £70,000. But the tax bill could be very different depending on where the earnings come from. If there are two adults for example:

1 household where 1 adult earns £70k, the other does not earn so there is higher tax levels to pay (£20,756 in tax and NI)

1 household where 2 adults both earn £35k so there is only lower tax to pay (£15,116 in tax and NI)

The former household would also be taxed on child benefit should they claim as well, whereas the later would not.

There are other considerations that can swing things the other way, in that should the income for the household have disposable income the higher payer could get a greater tax relief on a pension payment.

Its a minefield and can mean that households earning the same can have very different incomes just based on the taxation system.

[99plums]

Originally Posted by FamilyGWales

That's the case for now but interesting to see what is announced for England on weds.

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Are they planning on changing them then?

[123]

Originally Posted by FamilyGWales

That's the case for now but interesting to see what is announced for England on weds.

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Well the government can't change English Income Tax laws in isolation. The UK and English tax rates are the same (and will remain so).

If they increase UK tax rates they increase them for everyone.

It is then up to Wales and Scotland to decide if they want to vary them in any way.

Lets say the UK gov puts up main income tax rate to 23%

This means England and NI will be 23%

The Welsh tax will be 13% to UK gov and 10% (as currently set) staying in Wales - so still 23%

Scotlands is more involved but between £25K and £43k instead of paying 23% like the rest of the UK they will be paying 24%

[123]

Originally Posted by 99plums

Are they planning on changing them then?

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They will probably announce that tax will rise in the main budget (March) and that tax free allowance may be freezed (effectively a tax increase)

[Tinkerbell 1]

Originally Posted by 123

I'm always shocked by these two statistics:

The top 1% of earners in the UK now account for more than a third of income tax paid to the government, following changes over the past decade that have left almost half the population exempt from making payments.

In research underlining the dual nature of Britain’s income tax structure, the Institute for Fiscal Studies said above-inflation increases in the personal allowance to £12,500 a year meant 42% of adults paid no income tax.

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Crazy! Happy to pay my fair share but how can it be right that 42% pay nothing.

What grates the most is the loss of a personal allowance.

[WhereIBelong]

Originally Posted by Tinkerbell 1

Crazy! Happy to pay my fair share but how can it be right that 42% pay nothing.

What grates the most is the loss of a personal allowance.

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Those 42% do not earn enough to have to pay income tax, but pay plenty of VAT so would not say they pay nothing.