to ask how you will be affected by the budget announcements?

[manicinsomniac]

Sorry if there's another thread about this, I can only see lots of speculative ones.

Now that it's announced ... I admit I'm struggling to get my head around it. I don't think it's as bad as I thought? I don't think it can be that good though? I don't think there's a single thing in it that affects me. I'm not sure about any of that though because I find it all quite confusing!

So, ordinary people from ordinary families/households - how are you going to be affected, if at all?

That's not right Bulldog (although I'm a lawyer not an accountant).

I have 80 left after the corp tax and I then pay dividend tax at 32.5 percent which with the tax credit of ten percent takes it down to 25 percent. I end up with £60.

cleo and egos this website has already updated their dividend tax calculator here.
www.uktaxcalculators.co.uk/dividend-vs-salary.php

I did that calculation too. It has left a really bad taste in my mouth.

We are not struggling financially. Dh earns roughly 5 times my salary. We apparently will save around £315. Wtf? Why are they giving us that money? Nearly half of it to dh! So he benefits disproportionately to me.

Yes we pay a lot of tax, but seriously the Tories have some bizarre priorities. I too will be visiting the food bank to see about some redistribution.

This does not sit comfortably with me. I genuinely do not understand why they take a large percentage in terms of income from those with less money only to give a small percentage in terms if income to those who have more money.

Fuckers.

As for the inheritance tax, well that's deeply ingrained in Tory psyche. Bastards. And I say that as someone with elderly parents and in-laws who are now below the it threshold.

Sorry may I hope my last post didn't touch a nerve too much.

Its just so obvious they have a hard on for married couples and 'family values' with little regard for marriage break downs.

No I appreciate that Egos I was explaining the current system which has been replaced for the nest tax year.

next

Just throwing a curved ball DH and I are pensioners not on high pensions have adopted 8 DC's with SN the youngest 2 with very complex needs are 9 & 15, without CTC we would struggle.

My concern is who will adopt these children if parents already have 2 birth children? These children need forever parents.

That calculator would show us to be £400 better off. In reality I expect we'll be screwed and hate every moment of this government and those who voted for it.

is there a calculator which factors in disability (Dd1 is severely disabled). according to the calculator we will lose a TC but it doesn't seem to factor in the disability elements.

Prepper DH"s industry just had an across-the-board 15% pay cut and he is trying to work out what the implications of the changes to dividends tax is. I am very worried, as things are very tight anyway debts.

It won't really affect us at all I don't think. Not poor enough to lose anything but not rich enough to gain much.

It makes me wonder whether 'cash in hand' jobs will become even more prevalent with small employers trying to dodge the new living wage and your average joe trying to top their income up after they scrap their benefits.

I just don't see how they think so many low income households are going to be able to replace the two thousand pounds that will disappear? I was expecting a benefit shift but this seems to have affected masses of people in a massive way.

Can I just check some things with you lot? I'm struggling to understand what's happening. It won't affect me directly but it will impact on friends, colleagues and people who use the services I manage so I like to stay clued up.

I saw that currently 9/10 familes receive tax credits and that will go to 5/10 - so 40 % of familes will lose all benefit support? And the rest will lose a percentage? So 90% of familes roughly will be worse off (unless the income tax changes make up the difference or some of it)

Have I got that right?

I do t think so, RJ. They'll still get housing benefit, council tax benefit etc

I feel like crying, honestly what is the point in me going to work if im just worse off.

Ummmm...

Am I right in thinking this budget has basically penalized anyone who is expensive to be in work.

So if you are a working mother and need childcare paid your being penalized. If your disabled and need extra support to get into work you're being penalized.

As far as I can see if you are long term disabled or caring for someone who is long term disabled not much changes. I assume have worked out it is cheaper to continue to support you than it is to try and get you (or your carer) into work.

I'll be £1445 worse off, as a single parent.
Scared, as i work in retail for an independent, and don't think the books will cope with the wage increase. Either hours will be cut, or the younger ones will have to go and i'll have to pick up the slack.. i'm already physically struggling.

Prepper - I do know what I'm talking about, it's my job to know. Peaking income as dividends was a standard tax avoidance measure. I'm glad that loophole has been closed.

So you think higher HB/ctb for many people based on their reduced incomes will mean the impact isn't as bad as expected?

Interesting point!

Taking income.

And for the person who asked - earnings has a specific definition. Dividend income is investment income and doesn't fall under the definition of earnings.