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

[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?

Maybe if we stopped paying out so much in benefits we could recoup it that way and as a bonus wouldnt have so many illegal migrants as we wouldn’t be such a soft touch and they would stay in france

Well, for a start benefits are so low a tory would baulk at claiming that little for lunch. And these 'illegal migrants' you appear to dislike come from countries we started wars in. Why shouldn't they come here?

@longue

Ahhhh MN, the only place where someone can write ‘ 2 earners on 50K each are not earning massive amounts’ and not realise how ridiculous this sounds.

It isn't massive. A partner at a MC law firm will earn between 1-2m that's massive. Lots of very normal jobs pay 50k

Statistically though, not many people earn over £50k. I think less than 15-20%? And those earning £80k are in the top 5% of earners. £50k+ is not the norm based on averages across the UK. And one could reasonably expect that a family with a household income of £80k+ could absorb a £70pcm increase in costs, as rubbish as it may be for them that they have to pay it. The average salary in the UK is £25k-30k now I believe?

However instead of taxing the rich and the massively rich corporations more, they choose to pick on the little people.

They are taxing everyone. Rich people will pay more than poor people - that's the way tax works.

And if they tax the rich corporations more, who do you think ends up paying?

Incredible that the OP is castigated for being profligate but we should be happy to pay money so Dido can have her billions.

The OP needs to know her place!

Whatever happened to the extra £350m a week we were going to save as a result of Brexit? Boris did say that we would save £350m a week as a result of Brexit didn’t he? Surely that will cover it so no need for any tax rises?? So where is the extra £350m? What is it being used for? Maybe we should send in a freedom of information request to find out…

Oh give over with the immigrant bashing. Take a look at yourself @LidlMiddleLover

@youvegottenminuteslynn are you taking about PAYE earners though?

@LidlMiddleLover

Maybe if we stopped paying out so much in benefits we could recoup it that way and as a bonus wouldnt have so many illegal migrants as we wouldn’t be such a soft touch and they would stay in france

Yes, far too much is spent on benefits... said no person on actual benefits!

@longue yes, as always, the oppressed push downwards. “Do it to Julia.”

@DecadentlyDecisive

However instead of taxing the rich and the massively rich corporations more, they choose to pick on the little people.

They are taxing everyone. Rich people will pay more than poor people - that's the way tax works.

And if they tax the rich corporations more, who do you think ends up paying?

They are taxing everyone but this tax will be a drop in the ocean to the ultra rich. To families who are just about making ends meet this will have a big impact. They need to make use of more progressive taxation.

@DecadentlyDecisive

However instead of taxing the rich and the massively rich corporations more, they choose to pick on the little people.

They are taxing everyone. Rich people will pay more than poor people - that's the way tax works.

And if they tax the rich corporations more, who do you think ends up paying?

Yes that's the way TAX works.

But that's not the way that National insurance works.

Once you earn more than £4189 per month your NI drops from 12% to a measly 2%.

Surely a fairer way to raise these funds would be to up this upper earnings limit so the higher paid are paying more of a proportion at 12% rather than hiking it for all including the lower paid workers?

@LadyWithLapdog It does my head in & as a 2nd gen immigrant I just don't understand it.

You are in the top 5% earners, OP. How would you pay an unexpected bill - dentist, a new boiler, an expensive car repair... ?

Love how people are blaming out of control immigration.

Reminds me of this cartoon

@Xenia

I would rather we halved NHS provision and made parents pay towards state schools really than have all these extra taxes.

Both Labour and the Tories are high spending parties so we are being given no real choice at elections for those of us who favour a small state and low tax (other than move I suppose).

They will promise the earth to win an election…

Maybe the OP has made calculations so she can pay an unexpected bill but it doesn’t allow for chipping away at that margin. Honestly, she’s not the fucking enemy here. It’s not her maths skills.

XenoBitch I deed and now we have lost £80pm of the UC top up. So we're back down again and now looking at a NI increase.

So when you think about it, that extra they gave up, were just paying it back in NI and Tax for those of us who work and claim a small UC top up. They literally have "giveth with one hand and taketh with another"

Cheers Boris 👌🏻 twat

@girlmom21

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.

This.

@StressedAF

Sorry I might have this wrong but the comment about people losing homes doesn’t quite ring true. When we bought 7 ish years ago mortgage interest rates were around 5% an awful lot more than they are now.

Did the bank stress test your income when you applied?

I agree it’s not great but I would prefer to pay extra in NI so everyone can access healthcare through the NHS. If we moved to an American style private health care system with insurance, we’d likely pay more in NI to insure the family and even then insurance doesn’t cover everything. In the US some people end up going bankrupt and losing their homes to pay for health care. My friend who used to live in Texas told me she begged her sons nursery not to call an ambulance because she couldn’t afford it, that contributed to her reasons for moving back here.

You were being royally ripped off if you were paying 5% in 2014.

@BlueGreyElephant Check if you have a social pantry nearby. They're one tier up from a foodbank and most will help employed but struggling. You pay say £5 but leave with £15 worth of food as they get plenty that is short dated to avoid wastage.

Honestly, she’s not the fucking enemy here. It’s not her maths skills.

True dat

My husband paid £35000 in tax last year,
And a fortune in national insurance.
I think that's doing your bit.
I can't feel sorry for the op and her 70 quid a month dilemma.

Amazon’s sales doubled during lockdown. Apple and Facebook also profited. Meanwhile most other business were lucky if they were able to survive.

Why should Amazon and other companies like it get to enjoy all the extra profits from the lockdown and not contribute their fair share towards the inevitable costs?

I had some sympathy OP until you said £73 a month. At that rate you are earning twice what I do, and I'll cope, so I'm sure you will too.

And don't mortgage to the hilt. What if rates go up?