To be annoyed at the new tax brackets?

[Justbrowsing2024]

Means myself and lots of people I know will need to pay 40% tax. The new thresholds being lowered means we will be worse off at a time when everything is going up. I know it's only on a proportion of salary but it's a proportion that was going towards the increase in mortgage (due to come off an amazing low rate), imminent increase in childcare fees, council tax and everything else.
I know it's affecting so many people but today I have felt really flat.

I'm not anywhere near the top of the threshold (£45500 salary) and unlikely to get a payrise.
I'm sure tomorrow will feel brighter but feel free to join my pity party

How many undocumented migrants (or to use your terminology illegal immigrants) are included in the 1% of people in the UK who own 50% of all the land and hold more wealth than the bottom 70% combined?

How do you square that with your ludicrous claim that only "illegal immigrants" do well in Britain?

My point was, even if taught in school most people wouldn’t retain the information until it was relevant.

You are missing the point that that page is specifically written FOR EMPLOYERS. Even the hyperlink/URL states that clearly and it is repeated on the page itself.

If you've got to the point where you are the person doing the payroll, hopefully you have slightly more knowledge about tax codes than your average member of the public (or, apparently, poster on MN).

The part of the website aimed at the public could not make it any clearer.
https://www.gov.uk/income-tax-rates
There's even a calculator you can use.

You can't blame the person who wrote that page for writing it for their target audience and not muppets randoms from mumsnet who got lost on google

The state pension is rising to £221.20 per week in April - £11502.40 per year, which is still less than the £12570 tax threshold. I suspect that next year, if the pension rises to more than the tax threshold, personal allowances will rise. Historically, tax paying pensioners have always had their total income tax due deducted from other sources of income, leaving the state pension untouched. I think changing that, even though most of us have pensions paid into bank accounts rather than in cash at Post Offices so probably wouldn't notice if it were taxed, would be a huge step.

That doesn’t include your personal allowance, it’s confusing how they’ve written it but basically nothing has changed

The information on PAYE is clear on the .gov website.

https://www.gov.uk/income-tax-rates

There's a paragraph below the allowances table which says:

You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,140.

The original table in this thread is what you get if you specifically click on the phrase I've bolded and italicised , so it's perfectly clear. Someone somewhere just hasn't bothered to actually Google the tax bands, and somehow ended up on the wrong sectio and then a load of other people have taken it as gospel. We're forgetting how to actually think for ourselves...

This is what you said:

I suspect that some on minimum wage put in as much overtime as they can, which in itself can be clawed back by the taxman.

And you make it seem as if all the overtime is being "clawed back". Obviously it's not. Even your own bloody Googling showed you were wrong. Again.

It is already at that £221.20 it rises to £230.25 in april

Pensioners with other sources of income like a private pension receives an annual statement which tells them how much tax they have paid, just as though they were still working.

You choose to make an issue out of that? Have you nothing better to add to a thread than try to insult people?

Pensioners could be slapped with a "controversial" tax raid as part of Chancellor Rachel Reeves's upcoming Spring Budget, analysts have warned.
Reeves may be forced to implement additional tax rises to pay for the hike in defence spending, which was announced by Prime Minister Keir Starmer earlier this week.

I didn't "try to insult you" at all (there is no try, only do). I just set out some facts. Real ones, with which you seem to have very little to do!

Clearly scaremongering nonsense. The extra money for defence was funding by a reduction in overseas aid.

It is on the news. Not my fault you don't get up to date with news and politics,

Its a copy and paste.

No it's not

Indeed it does - senior moment - £230.25/£11973, many apologies. My main point about the tax threshold still stands though.

Yes, we do. But my point is that historically, the state pension itself, which for everyone was handed over in cash at Post Offices, was the bit of income that, although liable for tax, was / still is paid without deductions because the tax due is taken from other sources of income. This is entirely different to what happens with someone who has 2 jobs, where both pay packets have tax deducted if the pay exceeds the tax threshold.

So for me, paid directly into the bank, my state pension amount is exactly what is paid, with no deductions. All the tax I pay is deducted only from my (miniscule) personal pension - it is a lot more tax than the pension itself would attract on its own. This is why many people think that the state pension is not taxed.

Incidentally, my figures were incorrect in my previous post - senior moment - from April it is £230.25/£11973, many apologies. My main point about the tax threshold still stands though.

Yes it is very likely that it will breach the PA threshold from April 2026. Considering that the threshold is meant to be held until 2028 it would be problematic for pensioners where the only income is from state pension it will become an admin nightmare.

Have you a source that isn't an entertainment channel ?

it's not "on the news". It's on "GBNews" - which specifically calls itself an entertainment channel. Because it it called itself a news channel they would have to follow regulations - you know like telling the truth.

How can it be a "stealth tax raid" when it is crystal clear that any income above the personal allowance is taxable?

What a non- story. Loads of pensioners already pay tax.

If you only have state pension you do not have enough to pay tax as it is under the tax free band. The only pension at 67 I will have is state pension so if I chose to stop work then I would not be a tax payer as not earning enough.

If you keep working as my doctor father did full time to 77 (he died at 79) then in his case he paid vast amounts of 40%+ tax on his NHS and other pensions and lots of tax on his earned income too..

If you have a private sector pension on top of state (I don't) then HMRC will send a notice of coding as with employees and I think they deduct 20% tax at source and if you are 40% or 45% tax payer then they take the rest of the tax via your tax return.

Presumably it's easier to sneak stuff past the dim ?

Absolutely. That's why I think something will change before April 26. If the thought the outcry about Winter Fuel Allowance was bad - this will be far worse and an administrative nightmare too.