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Original poster

New NI tax. How are people meant to afford this?

540 replies

OnTheBrink1 · 08/09/2021 18:51

We bought our house just before covid, got a mortgage that pushed us quite a bit but worked it all out and it’s been doable since then. We needed to push the mortgage quite a bit because we were upsizing to get an extra bedroom for the kids and a downstairs loo and in our area and from what we had before it was a jump.
Been managing since then but no progression opportunities in DH job during the last 18 months due to covid it seems as recruitment was largely paused.
However, now we will now have to pay an extra almost £900 per year on this new tax. £73 I make it.
We don’t have any benefits of any kind.
It’s going to be quite a struggle to afford the mortgage and still maintain the car (which is old but we need for work and kids stuff) plus all the usual bills and food. Kids are between 8-12 and need bus passes, constant uniform and all manner of expenses of course.
I mean we will struggle by but it’s going to be tough to afford that extra £73 a month when we had all the mortgage planned.
Just don’t get how they can bring it in so soon when it’s such an increase. How are others in a more difficult position going to afford this? People will be loosing their houses surely?

OP posts:
Mantlemoose · 08/09/2021 18:55

Try having an unemployed DP as well but no benefit entitlement as I earn too much. Not just that but have to pay his NI put of my wages
Not even bloody married!!

Birdkin · 08/09/2021 19:00

I’m going to struggle as well. Got no savings already and just had a massive leak in my plumbing that’s going to require a massive amount to fix. Might have to get a loan.

PeonyTime · 08/09/2021 19:01

To be paying at that level, you have a household income around 70k.

I'm more concerned by the people at the other end of the earning spectrum, sorry.

LegendaryReady · 08/09/2021 19:03

It really isn't right that the working poor are paying to protect other people's inheritance, but they know it's a vote winner among those most likely to vote. Sad

Milly90 · 08/09/2021 19:04

I feel you. Its going to be about £70 a month here too. Dh said well the nhs is on its arse...but we honestly have hardly anything left at the end of the month as it is.

Were lucky in that we can make adjustments to lifestyle but still Sad

bicarbonateofcherrysoda · 08/09/2021 19:07

This has thrown me a bit because while I'll only lose £11 a month, I earn far less than you and haven't got another income to rely on.

girlmom21 · 08/09/2021 19:11

The money needs to come from somewhere.
If you're going to be losing that much a month you're on a decent wage. There are people living in genuine poverty who will struggle to feed their children.

I'm sure you have a couple of subscriptions you could cancel and shave a tenner a week off your food bill, worst case.

yoyo1234 · 08/09/2021 19:12

You must have a decent income if a 1.25% increase is £73 a month

EddieVeddersfoxymop · 08/09/2021 19:12

Same here. Its a weeks food shopping. We are in Scotland, so already pay significantly higher tax anyway. Now this on top of everything else - no child benefit, massive hike in council tax because we are over band D and now a bill of £70-80 per month more in NI.
Whilst I appreciate that there are others who will find this more difficult than we will, no one ever thinks that those in the middle just get squeezed and squeezed. We have no more to give.

Finfintytint · 08/09/2021 19:13

You’ve said yourself you needed to push your mortgage. I’ve never mortgaged to the max available and live a more comfortable life where sudden expenses don’t worry me so much. Why were you living on a knife edge where 70 odd quid a month means you will struggle?

nanbread · 08/09/2021 19:15

The money needs to come from somewhere.

Yeah it does. How about the top 5% instead of those on 20k.

Pixxie7 · 08/09/2021 19:18

What I don’t understand is that the government pays NI for the unemployed so surely this is going to significantly increase the welfare bill.

toconclude · 08/09/2021 19:22

@LegendaryReady

It really isn't right that the working poor are paying to protect other people's inheritance, but they know it's a vote winner among those most likely to vote. Sad
The beneficiaries are, let's be clear, middle aged children of the group you presumably wanted to damn without saying so. I'm a boomer ( just). I wanted progressive taxation rises and no cap on care spending as it lets off the very richest
Biker47 · 08/09/2021 19:23

@nanbread

The money needs to come from somewhere.

Yeah it does. How about the top 5% instead of those on 20k.

People on £20k never going to be taking money out to pay for their care then?
toconclude · 08/09/2021 19:23

What @nanbread said.

Akire · 08/09/2021 19:25

Same with people lower end working with UC top up as wages low. Lose £20 week UC plus £20 month for extra NI so big drop of £100 for them

toconclude · 08/09/2021 19:25

@Biker47

They already pay a disproportionate amount of their income towards future care costs.

Islamorada · 08/09/2021 19:26

Worst bit is that more taxes may come our way. All those Covid jabs and now boosters, furlough, lockdowns, out of control borders. Hopefully people would stop calling for more welfare benefits and uncontrolled immigration because these expenses all come from our taxes.

The system make it very hard for workers to make decent money and save. It is very expensive and most things are a rip off as well. Salaries are low.

Baystard · 08/09/2021 19:28

£73/month and represents a significant household income as others have said.

I think you can feel aggrieved at how they're going about it, but given the parlous state of the country finances someone needs to pay more and it shouldn't be the lower income households. It's not unfair for households of your income level to be paying.

I think you have bigger problems if you can't afford £73/month - if it wasn't NI hike it would have been something - normal tax fluctuation, fuel price increases, food price increases, etc. I don't think its the government's fault that you've overstretched yourself.

MatildaIThink · 08/09/2021 19:29

@OnTheBrink1

We bought our house just before covid, got a mortgage that pushed us quite a bit but worked it all out and it’s been doable since then. We needed to push the mortgage quite a bit because we were upsizing to get an extra bedroom for the kids and a downstairs loo and in our area and from what we had before it was a jump. Been managing since then but no progression opportunities in DH job during the last 18 months due to covid it seems as recruitment was largely paused. However, now we will now have to pay an extra almost £900 per year on this new tax. £73 I make it. We don’t have any benefits of any kind. It’s going to be quite a struggle to afford the mortgage and still maintain the car (which is old but we need for work and kids stuff) plus all the usual bills and food. Kids are between 8-12 and need bus passes, constant uniform and all manner of expenses of course. I mean we will struggle by but it’s going to be tough to afford that extra £73 a month when we had all the mortgage planned. Just don’t get how they can bring it in so soon when it’s such an increase. How are others in a more difficult position going to afford this? People will be loosing their houses surely?
If you are going to be paying another £900 pa that means you have a household income of around £100k pa. If you are in a situation where your household income is £100k pa, but a cost increase of £75 pcm is devastating there is something seriously wrong with your finances.
PersonaNonGarter · 08/09/2021 19:30

It’s absolutely outrageous to tax income.

They should have raised CGT or added Seller stamp duty.

RVN123 · 08/09/2021 19:30

@EddieVeddersfoxymop

Same here. Its a weeks food shopping. We are in Scotland, so already pay significantly higher tax anyway. Now this on top of everything else - no child benefit, massive hike in council tax because we are over band D and now a bill of £70-80 per month more in NI. Whilst I appreciate that there are others who will find this more difficult than we will, no one ever thinks that those in the middle just get squeezed and squeezed. We have no more to give.
This. People forget larger salaries lose the tax free portion of the salary (first part which everyone else gets tax free), no child benefit, and massive tax bracket. The tax bill every month is huge, higher tax payers pay vastly into the system already. Also, two people could be earning very good salaries combined, and the total household income could be the same as one persons higher salary, and yet the one person will have to pay far more. The middle earners get shafted every time.
Kitchendilemmas · 08/09/2021 19:30

@Mantlemoose

Try having an unemployed DP as well but no benefit entitlement as I earn too much. Not just that but have to pay his NI put of my wages Not even bloody married!!
@Mantlemoose why do you have to pay his NI?
Islamorada · 08/09/2021 19:32

Seller stamp duty. you really are creative. We bloody paid to buy. How much more can you screw people off.

MatildaIThink · 08/09/2021 19:33

@EddieVeddersfoxymop

Same here. Its a weeks food shopping. We are in Scotland, so already pay significantly higher tax anyway. Now this on top of everything else - no child benefit, massive hike in council tax because we are over band D and now a bill of £70-80 per month more in NI. Whilst I appreciate that there are others who will find this more difficult than we will, no one ever thinks that those in the middle just get squeezed and squeezed. We have no more to give.
Income tax in Scotland is slightly higher, but not significantly higher. On £33k pa it is an extra £57 pa in tax, on £50k pa it is an extra £1,541 pa and on £200k pa it is an additional £3,1667. None of those amounts could be described as significant at their relevant income levels.