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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:
Porridgealert · 08/09/2021 21:59

@longue

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.
That's not a govt issue, though. There are all sorts of things that people could do to bring pressure to bear on companies,and countries to improve ethical issues that they believe in. But as soon as it inconveniences people, ethics go out of the window. Not sneering at anyone for that by the way. I'm just as bad. And #whisper# I love Amazon. 🤫
longue · 08/09/2021 22:00

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.

Honestly the stupidly is astounding. What should those people who were furloughed have done?

ViciousJackdaw · 08/09/2021 22:00

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

That was a want, not a need. There will be women reading this who currently live in one room with a DC or two and use a toilet which is shared with other DM/DCs. My sympathies lie with them.

Cocomarine · 08/09/2021 22:00

@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.
If it was pointless, you saved it all - right? And that’ll cover your extra NI for a while. Of course you didn’t save it though - because it wasn’t pointless, you needed it then.

My husband got the “80% for doing fuck all” payment. Not he has to pay more NI. He’d have been pretty fucked without the 80% at the time though. Well, not that fucked as I earn too - but if it had been before we met and not after.

Porridgealert · 08/09/2021 22:01

Oh and @longue, I agree with you 100%. Dont you think we sometimes get what we deserve?!

longue · 08/09/2021 22:02

@Porridgealert I'm not disagreeing. it's like whinging about footballers, don't watch it, don't buy tickets or tv subscriptions, don't buy merch.

Porridgealert · 08/09/2021 22:03

@longue

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.

Honestly the stupidly is astounding. What should those people who were furloughed have done?

I agree it wasn't their fault, but it still has to be paid back!
longue · 08/09/2021 22:04

I agree it wasn't their fault, but it still has to be paid back

Well i'm confused why the same purse that funded track & trace etc is closed now!

longue · 08/09/2021 22:05

Dont you think we sometimes get what we deserve?!

Case in point Brexit

longue · 08/09/2021 22:06

That was a want, not a need. There will be women reading this who currently live in one room with a DC or two and use a toilet which is shared with other DM/DCs. My sympathies lie with them.

And there's women living in houses with 5 bathrooms paying less tax than the OP. Why the race to the bottom?

XenoBitch · 08/09/2021 22:06

@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 am on UC but in the LCWRA group. I was surprised to get the Covid up-lift tbh. My finances had not changed due to Covid. Totally understandable for anyone claiming the job seeking element etc.
jcyclops · 08/09/2021 22:07

People seem to have forgotten that employers NI is also increasing by 1.25%. This means that half the money raised will be paid by employers (including Amazon who may well have to pay something like an extra £17m/year). This contribution from employers can not be avoided by clever accounting, and is probably the main reason the government has opted for an NI increase. If the money was raised through income tax, the extra amounts needed from employees would have been much higher.

lockdownmadnessdotcom · 08/09/2021 22:07

Imagine how expensive it would be if you were ill and needed healthcare and had to pay for it.

I am not saying this is a magic bullet for the NHS but if people want good public services they will have to pay for them.

Also mortgage rates could increase, so you should always buy a house well within your means.

EmbarrassingMama · 08/09/2021 22:08

@nanbread

The money needs to come from somewhere.

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

The OP’s household probably is in the top 5%, no?
Winemewhynot · 08/09/2021 22:08

Highly doubt people will lose their homes over 1.25%

Yeah it’s a kick in the balls after a shitty year but the money has to come from somewhere, we’ve an ageing population and a busting at the seems NHS, social care is so important and has been neglected by governments for decades.

Notcontent · 08/09/2021 22:08

A tax rise is never pleasant. I am on a good salary but I am a lone parent in London so it’s not huge. I recently got a tiny pay rise, which will now be swallowed up by this. I wouldn’t mind so much if I thought the money was going to be used wisely…

Doubledoorsontogarden · 08/09/2021 22:08

There’s a calculator here to work difference www.which.co.uk/money/tax/tax-calculators/national-insurance-calculator-aw6yt3g6vd0g

I think the OP is paying an extra £35 ish per month. Is that so?

longue · 08/09/2021 22:11

The OP’s household probably is in the top 5%, no?

No

stairway · 08/09/2021 22:12

The working class was foolish to give the torries such a large majority. It was quite in your which demographic was going to foot the bill for then pandemic. This is the Conservative party folks 🥳. I doubt Boris even realised that many people rely on their wage as their entire income source. We will
loose around £600 a year plus all the other price rices. We are lucky to have cheap rent but I can’t see myself buying a house in the future. That dream is gone. We are cutting back, things like doing our own haircuts. Getting things on free cycle, reusing stuff and cutting back on food waste. The one positive is lower income people waste so much less.

longue · 08/09/2021 22:13

I am not saying this is a magic bullet for the NHS but if people want good public services they will have to pay for them.

But a lot of us already do pay for the NHS as we pay NI. Now do we pay enough? With an ageing & unhealthy population? unlikely.

RubyViolet · 08/09/2021 22:14

And council tax looks likely to increase, during the debate in the Commons today it was pointed out that in the small print of this bill were references to potential funds raised via council tax revenue increases.

longue · 08/09/2021 22:15

I think they realised so many of today's young won't have homes to use for funding.

longue · 08/09/2021 22:16

@RubyViolet my CT went up already with an additional social care charge

longue · 08/09/2021 22:19

Don't forgot that by freezing the basic rate tax band & higher rate tax band until 2026 will also mean less in people's pockets

chaosrabbitland · 08/09/2021 22:20

@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
yes , i do believe theresa may said she thought it right that elderly home homeowners should have to reasonably sell to help pay their care bills , but she was forced to back off from it because of all the fuss it would cause , the elderly comprising of a lot of tory voters , now hes making sure hes going to count on their votes , still no other bugger in a different age group will be though . i think if you have to go into care then yes your house should be used to fund it , not so it can be bloody left to your grown up kids