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?

@DucksFlyTogether

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

Everyone is having it taken away. We're all worse off. Why should you be exempt.

@Otherthanetta

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?

Exactly. Especially as they continue to exploit the staff who are actually keeping their business going by packing boxes in warehouses and making deliveries.

You are in the top 5% earners

But you understand that this doesn't mean what you think it means.
The richest don't tend to be on PAYE

Well, as long as the OP will cope, who cares about the stress and distress and whether she had some actual other plans for the money. As long as some Tory crony can get his cut of whatever deals he’s cut with his mates in the lucrative business of Covid.

You can tackle Amazon without global initiatives. People could stop shopping there under the guise that it's cheap if they want Amazon to be more ethical.

If £73 is going to break your budget then what are you going to do when interest rates rise from their record lows and you mortgage payments increase?
Not a great move to max out when rates are so low, you have been ill advised!

cant

@Otherthanetta

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?

Every other country has this problem with these companies. Do you not think that perhaps there are legitimate reasons why they can't get them to pay their fair share? All countries are twisting their tax laws to try and get the full amount?

Porridge alert I know everyone claiming UC has had it deducted not just me. Just seemed pointless to give the top up in the first place is all I'm saying.

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

Well has the OP fixed. She may be able to move to part & part or interest only or extend the terms. There are options.

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.

Why don't you think the OP has paid tax?

@DucksFlyTogether

Porridge alert I know everyone claiming UC has had it deducted not just me. Just seemed pointless to give the top up in the first place is all I'm saying.

I suppose it was to get you through the worst of the pandemic.

Gosh op you bring in approx a hundred grand a year and can’t afford seventeen quid a week? You need to cut back somewhere, because the bank will have done an affordability check which includes if interest rates went up way more than seventy quid a month.

As such it isn’t the mortgage it’s the rest of your spending.

I assume we are all hoping to live to a ripe old age? Sadly a lot of us will need care at some stage. It does need to be paid for somehow. Of course if you have nothing you get it all free. Is that why you are spending every penny?

Lots of boomer bashing as usual. Its not the boomers who were sitting on their asses at home getting 80% of their pay for doing sweet fanny adams! Someone has to pay for all that time that folks spend doing up their houses and gardens.

@yoyo1234

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

It's an extra 10% for people, not 1.25%

It's going to hit us hard too. We live in an expensive area and our mortgage is high, though our house is a regular end terrace, nothing fancy. We've 2 kids in full time child care (well 1 nursery, 1 full wrap around). We run a car because it's considered essential for my job (I'd lose it if I didn't have one). We have a good household income but we also have outgoings to match. To reduce our outgoings, we'd have to move areas and move the kids schools or I'd have to get a get a different job with different hours and never see DH. We don't have sky, our only subscription is Netflix. Our food/ supermarket bill has gone up hugely. This wont cripple us but it will really impact us.

To also help save, people can look at e.g. Sky packages, virgin, their costas, look at substituting different food brands, minimizing takeaway food, ect, all adds up in expenditure.

I am sure she has paid tax. But moaning about 17 quid a week is a bit rich. The nhs is on its knees.

But having said that, I'd prefer properly funded care!

Ah well same old same old..the rich get richer and the poor get poorer

Qué Elton John

"it's the circle of life....."

The boys club never choose increases that effect the boys club, just us meer mortals.

Did anyone really expect no tax or NI increases given the fact we've paid for the majority of the population to be on furlough and tanked our economy.

I mean as a single parent on one income it will be a bit of a rise, but I'll manage it. I'll have no choice in the matter.

@DucksFlyTogether

Porridge alert I know everyone claiming UC has had it deducted not just me. Just seemed pointless to give the top up in the first place is all I'm saying.

Look at this way: if you hadn't had the top up, you'd be even worse off. It will apply to everyone who got pay rises too.

@simitra

Lots of boomer bashing as usual. Its not the boomers who were sitting on their asses at home getting 80% of their pay for doing sweet fanny adams! Someone has to pay for all that time that folks spend doing up their houses and gardens.

Was it not? My boomer husband had a high old time in the sunshine in lockdown 1, on 80% wages which - when you accounted for no petrol and parking - was pretty good.

I am sure she has paid tax. But moaning about 17 quid a week is a bit rich. The nhs is on its knees.

I don't think £17 a week is insignificant. Yes it's on it's knees but I have little faith this will improve things.

It's an extra 10% for people, not 1.25%

Are you sure? I believe it is 1.25 percentage points