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AIBU?

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AIBU that working people should be rewarded in the Budget?

318 replies

DistingusedSocialCommentator · 03/03/2024 23:04

As above by way of increasing the tax threshold which has been on ice for a while.

The lower paid will benefit the most as those earning about 125k I think it is dont get any tax reliefe. 2 of the 3 children of ours pay 40% or more in tax plus NI. Therefore, the lower paid will benefit the most

We left worl in our early 50's and yet to reach state pension age.

I've read that many pensioners will soon be paying taxes as many are also being paid a few quid in private pensions they contributed to

so rather than a penny or two cut, raise the threshold of income tax

The gov must also do away with IHT but that is a different subject.

So if you agree with me, then it is I am being reasonable

OP posts:
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9
randomchap · 05/03/2024 10:16

I want working people to be rewarded with

A working nhs
Easy access to gp appointments
Nhs dentistry
Courts dealing with criminals in a timely manner
More police
State funded refuges for women
Roads that aren't dangerously full of pot holes
Social care
Rivers that aren't full of shit
Refugees being quickly processed and either sent back, or granted asylum so they can work

Not a single one of these will come out of tax cuts.

CagneyAndLazy · 05/03/2024 10:10

We need to tax people enough during their working years to fund this.

I don't disagree in general, but what about people who choose not to work ('choose', not due to disability)?

If you pack in work to be a SAHP and never go back, or not fully, you're just as much of a burden on the state in old age but haven't contributed to the cost to anything like the level that the workers have.

The government can't just keep milking PAYE earners to fund services.

I don't think people in their 'working years' should be the main target here.

motherofbantams · 05/03/2024 10:09

@pointythings agreed - she is not wrong though that it did happen. Would not happen again though.

caringcarer · 05/03/2024 10:04

Boomer55 · 05/03/2024 09:08

My State Pension, thanks to SERPS, is already over the threshold. They tax me via my private pensions.

Yes people contracted out under SERPS are on old state pension but some will be over threshold rate for tax. Just like other pensioners will pay tax on private pensions.

caringcarer · 05/03/2024 10:02

NashvilleQueen · 05/03/2024 08:00

Meanwhile back in real life the number of people voluntarily paying more tax than they need to is in double digits each year. Presumably they’re all Mnetters.

But I don't want to pay tax than I need to. I just want everyone to pay the right level of tax to support our essential services rather than always trying to get a few quid more and then complaining about the fact that the bins don't get emptied enough or you've had to wait 12 hours for an ambulance. It's really not difficult as a concept.

For what it's worth I can't ever see bins being emptied weekly again because it's largely been successful to empty them fortnightly. I'd far rather any money saved went on kids services which is being cut by many councils ATM. Adult social care takes most money from LA budgets. We need to tax people enough during their working years to fund this.

dollybird · 05/03/2024 09:46

pointythings · 05/03/2024 09:31

This isn't 1974 though, and anyone suggesting Labour would do this again is scaremongering.

Agree. 1974 is before I was born, and the UK/world couldn't be a more different place.

caringcarer · 05/03/2024 09:45

Tryingtokeepgoing · 05/03/2024 00:13

The personal allowance was a pittance under the last Labour government - just over £5k. It doubled under the coalition government in a short space of time, and has gone up a further 25% since then to £12,570. Indexing the allowance since the last Labour government would mean it was around £9k today; it’s actually a third higher. So it’s hardly fair to level the blame at Hunt for this one.

The higher rate threshold was £33k then, inflation has taken that to £54k, so that needs to go up. The basic rate of tax was 22%, so that’s already come down.

Reducing NI is a good way of targeting those in work…those of pension age don’t pay it, and it closes the gap between tax on earned and unearned income, which is something being slated on another thread.

Sorting out the child benefit cliff edge and the reinstating the personal allowance for all taxpayers would seem fairer as well. Raise the 2% NI rate to fund this, or step it up again at £100k. Be bold and roll NI and income tax together to get more from those with a decent pension income…ooops, that’ll never happen ;)

I did read Hunt has his eye on Non Dom's and cutting relief on holiday let's do both of those options would bring in more taxes.

pointythings · 05/03/2024 09:31

motherofbantams · 05/03/2024 09:19

She is not wrong about the Wilson tax rate in 1974 of 83% on hr income. Not sure about the exodus though.

This isn't 1974 though, and anyone suggesting Labour would do this again is scaremongering.

motherofbantams · 05/03/2024 09:19

Jovacknockowitch · 04/03/2024 18:47

Look at Labour, if mem serves me well, when i was at school, they had a upper tax rate of 88% and a lot of the people that were paying towards ruing the country via their taxes f'd off out of the country and it went belly up
It doesn’t.

She is not wrong about the Wilson tax rate in 1974 of 83% on hr income. Not sure about the exodus though.

Boomer55 · 05/03/2024 09:08

Morph22010 · 05/03/2024 05:26

The new state pension goes up to £221.20 a week from April which is £11502.40 a year, that’s below personal allowance. People will only be above if getting extra

My State Pension, thanks to SERPS, is already over the threshold. They tax me via my private pensions.

MereDintofPandiculation · 05/03/2024 08:28

Morph22010 · 05/03/2024 05:26

The new state pension goes up to £221.20 a week from April which is £11502.40 a year, that’s below personal allowance. People will only be above if getting extra

I misunderstood. It's not the new pensioners, it's older pensioners coming under SERPS who are being affected now.

New pensioners will be affected in 2 years time if the tax free allowance continues to be frozen and the state pension still rises under the triple lock

Be bold and roll NI and income tax together to get more from those with a decent pension income In theory, National Insurance was an "insurance" against being out of work work no longer able to work, hence unemployment benefit being dependent on contributions, and pension being dependent on contributions. So it seems odd to be still paying in to insurance while the insurance is paying out to you in the form of pensions. Rolling it together with income tax would mean working out how to cater for the employers contribution and the different amount paid by he self employed. And the crediting of contributions to those receiving child benefit and not working.

Median retirement income is is just over £18k a year.

Pleasebeafleabite · 05/03/2024 08:16

some people actually care more about others than themselves. Some people are happy to pay more tax to fund decimated public services

These were your words. Only you’ve now qualified what you’ve said to being not more tax than you need to. Which is the same as anybody isn’t it really?

Where I live in Leeds the council are reducing waste collections, but have several millions to spend on road schemes so that anybody with a car or a disability can no longer get around. The buses have had to add 25 minutes to their timetable to get through the city centre. It’s that bad.

Why would anyone want to give these clowns more of their hard earned money?

NashvilleQueen · 05/03/2024 08:00

Meanwhile back in real life the number of people voluntarily paying more tax than they need to is in double digits each year. Presumably they’re all Mnetters.

But I don't want to pay tax than I need to. I just want everyone to pay the right level of tax to support our essential services rather than always trying to get a few quid more and then complaining about the fact that the bins don't get emptied enough or you've had to wait 12 hours for an ambulance. It's really not difficult as a concept.

Pleasebeafleabite · 05/03/2024 07:54

NashvilleQueen · 05/03/2024 06:37

Nah that's fine thanks. Just make sure that essential public services are properly covered. That's all the reward I need.

Oh and there's many many people who think like me. Which is why the Tories are on the road to a decade in opposition.

Meanwhile back in real life the number of people voluntarily paying more tax than they need to is in double digits each year. Presumably they’re all Mnetters.

taxguru · 05/03/2024 07:11

BIossomtoes · 04/03/2024 21:55

they haven't got a mechanism for doing that.

They’ll have to invent one then. They can employ some of those highly paid IT experts.

They've already "invented" the system - It's called simple assessment!

taxguru · 05/03/2024 07:10

MereDintofPandiculation · 04/03/2024 21:50

I've read that many pensioners will soon be paying taxes as many are also being paid a few quid in private pensions they contributed to

Most pensioners already pay tax.

The issue is that HMRC count your state pension against your tax free allowance and you pay all your tax from your private pension. But now the new higher state pension (received only by younger pensioners) is set to exceed the tax free allowance, so that tax will have to be paid on the state pension too, and they haven't got a mechanism for doing that. So some pensioners are going to have to start filing in tax forms instead of it all being done automatically.

They HAVE got such a mechanism and it's called "simple assessment"

You may get a Simple Assessment letter from HM Revenue and Customs (HMRC) if you:

  • owe Income Tax that cannot be automatically taken out of your income
  • owe HMRC £3,000 or more
  • have to pay tax on the State Pension

https://www.gov.uk/check-simple-assessment#:~:text=You%20may%20get%20a%20Simple,tax%20on%20the%20State%20Pension

Check your Simple Assessment tax bill

How to check your Simple Assessment: what to do if you think the figures used are incorrect, how to ask HMRC for a review, when to pay.

https://www.gov.uk/check-simple-assessment#:~:text=You%20may%20get%20a%20Simple,tax%20on%20the%20State%20Pension

EmmaGrundyForPM · 05/03/2024 07:04

@DistingusedSocialCommentator most councils who are in financial difficulty are in that position because the government has cut central funding.

You have no understanding of economics so stop spouting crap. And the idea that if people just stopped buying takeaway coffee they could afford a house deposit is just laughable.

Given your age, you presumably bought your house when the house price to income rational much lower. As did we. Young people these days don't have that opportunity.

NashvilleQueen · 05/03/2024 06:37

Nah that's fine thanks. Just make sure that essential public services are properly covered. That's all the reward I need.

Oh and there's many many people who think like me. Which is why the Tories are on the road to a decade in opposition.

Alcyoneus · 05/03/2024 06:33

NashvilleQueen · 05/03/2024 06:21

The thing Tory voters fail to understand when starting these fear mongering threads is that some people actually care more about others than themselves. Some people are happy to pay more tax to fund decimated public services. Some people don't want to sit around from 50 reading the money section of The Daily Mail worrying about every penny because it's mind numbingly boring.

I work incredibly hard and I pay a shit load of tax. I'm perfectly fine with that. What is hope tho is that Labour will use that money to fund schools and the NHS and not to reward their mates through dodgy contracts or tax breaks for the most wealthy.

Awww someone should give the pride of Britain award. After all, you care so much.

NashvilleQueen · 05/03/2024 06:21

The thing Tory voters fail to understand when starting these fear mongering threads is that some people actually care more about others than themselves. Some people are happy to pay more tax to fund decimated public services. Some people don't want to sit around from 50 reading the money section of The Daily Mail worrying about every penny because it's mind numbingly boring.

I work incredibly hard and I pay a shit load of tax. I'm perfectly fine with that. What is hope tho is that Labour will use that money to fund schools and the NHS and not to reward their mates through dodgy contracts or tax breaks for the most wealthy.

Neurodiversitydoctor · 05/03/2024 06:01

This reply has been deleted

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Morph22010 · 05/03/2024 05:33

Tryingtokeepgoing · 05/03/2024 00:13

The personal allowance was a pittance under the last Labour government - just over £5k. It doubled under the coalition government in a short space of time, and has gone up a further 25% since then to £12,570. Indexing the allowance since the last Labour government would mean it was around £9k today; it’s actually a third higher. So it’s hardly fair to level the blame at Hunt for this one.

The higher rate threshold was £33k then, inflation has taken that to £54k, so that needs to go up. The basic rate of tax was 22%, so that’s already come down.

Reducing NI is a good way of targeting those in work…those of pension age don’t pay it, and it closes the gap between tax on earned and unearned income, which is something being slated on another thread.

Sorting out the child benefit cliff edge and the reinstating the personal allowance for all taxpayers would seem fairer as well. Raise the 2% NI rate to fund this, or step it up again at £100k. Be bold and roll NI and income tax together to get more from those with a decent pension income…ooops, that’ll never happen ;)

what the current government has tended to do when they raise the personal allowance (at least initially when they had the large increases) was to reduce the basic rate limit. The logic being that if you don’t do that someone on 40% tax gains twice as much as someone on 20% tax from an increase in the personal allowance. Unfortunately this has meant the higher rate limit hasn’t kept pace

Morph22010 · 05/03/2024 05:26

MereDintofPandiculation · 04/03/2024 21:50

I've read that many pensioners will soon be paying taxes as many are also being paid a few quid in private pensions they contributed to

Most pensioners already pay tax.

The issue is that HMRC count your state pension against your tax free allowance and you pay all your tax from your private pension. But now the new higher state pension (received only by younger pensioners) is set to exceed the tax free allowance, so that tax will have to be paid on the state pension too, and they haven't got a mechanism for doing that. So some pensioners are going to have to start filing in tax forms instead of it all being done automatically.

The new state pension goes up to £221.20 a week from April which is £11502.40 a year, that’s below personal allowance. People will only be above if getting extra

mellongoose · 05/03/2024 04:59

Demand on public services from the working age population is at an all time high. I would like to see this come down dramatically. Then people will see tax cuts and be able to keep more of their own money.

It's better for growth to have money spent in the private sector than the public. Taking responsibility for your own family rather than expecting the Government to support you. If you're healthy, you should be working to provide.

ItsAllAboutTheDosh · 05/03/2024 00:31

Do you know how long ago Labour were in power and how high inflation has been since? At least post what the personal allowance was in real terms when inflation is taken into account, and post average wages in real terms then and now.

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