AIBU that working people should be rewarded in the Budget?

[DistingusedSocialCommentator]

As above by way of increasing the tax threshold which has been on ice for a while.

The lower paid will benefit the most as those earning about 125k I think it is dont get any tax reliefe. 2 of the 3 children of ours pay 40% or more in tax plus NI. Therefore, the lower paid will benefit the most

We left worl in our early 50's and yet to reach state pension age.

I've read that many pensioners will soon be paying taxes as many are also being paid a few quid in private pensions they contributed to

so rather than a penny or two cut, raise the threshold of income tax

The gov must also do away with IHT but that is a different subject.

So if you agree with me, then it is I am being reasonable

Why are you so afraid of Labour, OP? Seems to me that people like you would be no worse off under them.

I've done pretty well under this Tory government, but I have never voted for them and never will. They promised to be the "party of law and order" but stood by idly while a soldier and two MPs were murdered by fanatics, cut funding to the police and prisons, made it HARDER to deport and extradite criminals....and that's before we get onto things like funding the NHS, food banks and the parlous state of education. They are nothing but asset-strippers, and anyone who thinks they care a jot for the people of this country is a fool.

If you think a simple question is a rant, there’s no helping you. Who’s the Labour captain?

No, they must keep IHT. Only a small number of very rich inheritors pay it.

You left work in your early 50s!? How about getting back to work then, if bring taxed on a pension bothers you so much?
Entitled or what?

Quite. They mean people willing to challenge greedy, selfish and very well off people like them.

Not exactly - 1.2m people moving into £30k jobs would bring £4.2bn of income tax, not £4.2m and this is excluding NI. It's a significant amount.

BUT, unemployment number is calculated based on registered jobseekers, it doesn't take into account working age economically inactive (like OP), NEETs, etc. That number is significantly higher. Having even smaller proportion of them into PAYE would bring huge amount of tax.

Even more, those 1.2m on unemployed are most likely to get benefits (let's assume £1k/month total each to be very modest), it's another £14.4bn.

Tax is paid on income regardless of where it comes from. I'm not sure why you think someone who is retired doesn't pay tax.
Are you suggesting an extra tax? I'm not sure what your issue is

To be honest, whenever Labour are voted in it's more of a relief than a victory. Relief after years of being squeezed to the bone, thousands of people left to die for being disabled or unwell. Do you think this is hyperbole, because it isn't. Its always the case that the country is on its fuckint knees by the time Labour arrive to pick up the pieces. No political party is perfect but at least they care for the common citizen, and aren't fanatic about becoming a neo American wasteland, like our current government appears to have been.

whenever Labour are voted in it's more of a relief than a victory.

That’s not my memory of 1997. The majority of the country was euphoric.

Well a poll predicts that Sunak could end up with 25 seats.

25! I cannot believe it would be that bad but it's a decade of Labour coming

The majority weren't at all euphoric, some had long memories!

It a majority weren't at all euphoric, why did Labour win so massively in 1997?😂

I've read that many pensioners will soon be paying taxes as many are also being paid a few quid in private pensions they contributed to

Most pensioners already pay tax.

The issue is that HMRC count your state pension against your tax free allowance and you pay all your tax from your private pension. But now the new higher state pension (received only by younger pensioners) is set to exceed the tax free allowance, so that tax will have to be paid on the state pension too, and they haven't got a mechanism for doing that. So some pensioners are going to have to start filing in tax forms instead of it all being done automatically.

We already have one of the highest tax free amounts in Europe. There is an argument that everyone should pay some tax as it gets buy in to society. Most other European tax rates are higher at lower levels.

they haven't got a mechanism for doing that.

They’ll have to invent one then. They can employ some of those highly paid IT experts.

60% tax?

It does seem pretty harsh the way the personal allowance drops off at £100k, but also keep in perspective you're the top 3-4% of earners in the country. You are not paying 60% tax on £99,999 of your earnings.

@Morph22010 thank you so much, I’ll have a look into that.

@Nat6999 thank you so much. I applied for that in Jan, haven’t heard anything yet. The government only changed the rules as they were taken to court. Claims are only backdated to 2018 as that was the year involved in the court case.

Tbh I am quite surprised that only 4% of households end up paying IHT. My situation of being a single parent with a house prob likely to be just over the threshold of £500k may be more unusual than I think. I am certainly not well off, it is my only asset of any value. I have multiple children so it will be split quite a few ways.

Single unmarried parents do seem to lose out with government policy especially widowed ones. Child maintenance is disregarded for benefit purposes for divorcees but there is no amount of disregard for life insurance payouts left to pay for costs of children as a result of the parent dying.

The personal allowance was a pittance under the last Labour government - just over £5k. It doubled under the coalition government in a short space of time, and has gone up a further 25% since then to £12,570. Indexing the allowance since the last Labour government would mean it was around £9k today; it’s actually a third higher. So it’s hardly fair to level the blame at Hunt for this one.

The higher rate threshold was £33k then, inflation has taken that to £54k, so that needs to go up. The basic rate of tax was 22%, so that’s already come down.

Reducing NI is a good way of targeting those in work…those of pension age don’t pay it, and it closes the gap between tax on earned and unearned income, which is something being slated on another thread.

Sorting out the child benefit cliff edge and the reinstating the personal allowance for all taxpayers would seem fairer as well. Raise the 2% NI rate to fund this, or step it up again at £100k. Be bold and roll NI and income tax together to get more from those with a decent pension income…ooops, that’ll never happen ;)

Do you know how long ago Labour were in power and how high inflation has been since? At least post what the personal allowance was in real terms when inflation is taken into account, and post average wages in real terms then and now.

Demand on public services from the working age population is at an all time high. I would like to see this come down dramatically. Then people will see tax cuts and be able to keep more of their own money.

It's better for growth to have money spent in the private sector than the public. Taking responsibility for your own family rather than expecting the Government to support you. If you're healthy, you should be working to provide.

The new state pension goes up to £221.20 a week from April which is £11502.40 a year, that’s below personal allowance. People will only be above if getting extra

what the current government has tended to do when they raise the personal allowance (at least initially when they had the large increases) was to reduce the basic rate limit. The logic being that if you don’t do that someone on 40% tax gains twice as much as someone on 20% tax from an increase in the personal allowance. Unfortunately this has meant the higher rate limit hasn’t kept pace

The thing Tory voters fail to understand when starting these fear mongering threads is that some people actually care more about others than themselves. Some people are happy to pay more tax to fund decimated public services. Some people don't want to sit around from 50 reading the money section of The Daily Mail worrying about every penny because it's mind numbingly boring.

I work incredibly hard and I pay a shit load of tax. I'm perfectly fine with that. What is hope tho is that Labour will use that money to fund schools and the NHS and not to reward their mates through dodgy contracts or tax breaks for the most wealthy.

Awww someone should give the pride of Britain award. After all, you care so much.