Media reports on tax credits cuts

[VivienScott]

I, like many others on the other threads, have been affected by tax credit cuts. I get working & child tax credits (single, p/t worker, 2 children) and will lose over £1400 net a year, just like many others. I work for the NHS, this is equivalent to losing 2 months net pay.

I'm hearing pretty much the same thing from lots of other people. People who don't have much money are losing a huge chunk of their income, and yet, it's hardly spoken about in the press. Everyone's saying what a great budget it is, no one is focusing on just how big a chunk of money people are losing. If people on low to mid incomes were going to be hit with a £1400 income tax bill from next year there would be outrage in the media.

AIBU in thinking the press are in on it too?

Yes the Guardian will concentrate on the elements that affect their readership. BTL tax changes will really hurt some landlords, some have been saying that it will reduce their profits by 60% and can't believe their tory government have done this to them. Agree about China, they have gone past desperation stage.

Potatoprints - If you read the original thread, and the many others, you will see that they are complaining - "I want my free money"

Definition of 'medium' or 'high' income is relative and depends on your viewpoint - Those at the top end receiving tax credits earned substantially more than minimum wage. Don't forget tax credits are not taxed like wages, it made a mockery of those working full hours on slightly above average wages, when others were having their income topped up to the same take home level, for less hours/lower grade job.

Just a quick point about changes to income tax as it might benefit a few people on this thread- another thing that's coming in this year is that spouses can pass £1100 of unused personal allowance between them. Basically if you don't earn anything, or you earn less than the personal allowance, you can give your DH some of your tax band. If your DH is a basic rate taxpayer, would save you about £220 a year. I know that won't make up for what people have lost in TCs, but worth doing anyway. Better in your pocket than George's!

Does anyone know when the tax credit cuts are going to be introduced, btw? Is it April 2016? I know the two child limit is 2017.

Must say as well, for all the other problems this Budget is creating, the BTL stuff is great. And long overdue.

I'm cross that employers have until 2020 to pay 9 pounds an hour. People need higher wages now. 7.20 is just not enough. I know all the arguments about making it easier for companies and prices rising, but I think the living standards of ordinary people should take precedence.

I don't understand it all at all. I don't understand how people can live on the minimum wage at the current level or at the 7.20 level . By the time £9 comes in it will be worth no more than that surely as prices go up.

Two people working full time for 7.20 an hour is what about 28,000 (sorry I'm really rubbish at working these things out) minus taxes etc then if they have a child minus childcare even if they do get 30 hours free (which isn't until 3 years old).

Rent would be around (in the area I am at least) £500- 600 amonth for a 2-3 bed house.

It just doesn't add up I don't get people who are bleating on about it forcing people to work to live! They might work but I don't see how they can live?!

Surely if the btl landlords are going to lose some of their income they will just put rents up. How is this helping "We're all in this together" working families.

Some of them will no doubt try it. They might get away with it in a few of the more popular areas I suppose. Elsewhere, they won't be able to do it, particularly as lots of people will now have less money due to TC and HB cuts. So they'll sell. A glut of properties on the market will be great for the hard working families who have previously been unable to get on the ladder, forced into overpriced private rentals.

Ultimately, propping up BTLers with tax breaks is a bad thing for the economy and society generally. FTR I've no interest in a landlords are/aren't evil discussion, it doesn't really matter whether they are or not. People do what they're given economic incentives to do, so people did BTL when the tax breaks made it attractive. It just matters that we take steps to fix our housing crisis, and making BTL less attractive is one of the things we need to do.