Tax increases imminent

[Iwishicouldflyhigh]

Heavy hints that taxes will rise in the next Budget after the recent climb down (as the ‘taxes won’t rise again’ was based on a 5 billion saving in benefits).

I can’t lie, I’m so pissed off about this. I don’t think anyone wants to see someone who is genuinely unable to work to be further penalised, but we all know there are thousands of people who could work but don’t.

this country is going to absolute shit . We pay more and more for less and less.

Remove pension credit not the state pension

Situations change, Trumps tariffs, Ukraine, Covid... anything can make a manifesto promise unobtainable.

The Tories ran on no tax rises in 2019.... look how that ended?

Democracy is fore filled at the next GE....

But they were the ones who hiked the tax bands in previous years far above inflation, and doubled the NIC threshold to match the tax threshold.

@taxguru but look at the outcry re winter fuel. Many pensioners won't tolerate losing triple lock, paying NI, higher CT and prescriptions.

@Alexandra2001 and we all know Trump is planning a next phase to the tariff war soon…

But they were the ones who hiked the tax bands in previous years far above inflation, and doubled the NIC threshold to match the tax threshold.

But that doesn't change the fact it was Tories who froze the bands.

Remove pension credit not the state pension

Who wants to remove the state pension?!

That only happened because the TH was ridiculously low.

No one will have much sympathy for a pensioner with an income over 50k, paying NI on income above that or someone with a 5m house being asked to pay more CT, just as there is no outcry on 2nd home CT increases.

Basic pension is too low to take away TL.

I would like governments to be honest and lay out clearly the issues and the associated costs and the alternative ways of dealing with the costs. But a lot of the electorate don't want truths.

That only happened because the TH was ridiculously low.

so why raise it to a household income of 70k!

But what had changed that is so significant to go back on that promise?

The real black holes are the mismanagement of the sovereign debt and the huge black economy. Solve those we don’t need to talk about tax rises leading to further permanent decline. We have really clever experts and economists and perhaps if the politicians actually listened and thought long term there would be some excellent solutions.

How could they possibly remove pension credit ? I have a client currently who came from India and has never worked here. She lived off her husband's state pension until recently when the husband went into a Nursing home. Now she has to claim pension credit, housing benefit etc or would starve and lose her home. She has no state pension at all. I see this regularly in my job. There are lots of ( usually older women) who have very very low state pensions due to barely working and need Pension creidt to survive, then you have British citizens who have worked abroad most of their lives but then decide to come back to the UK ( often with no means of supporting themselves ). In future years we will obviously see less people reliant on pension credit as many more will have occupational pensions.

The WFA fiasco was because it wasn't thought through and the cut off was stupid! We expect more from the "professionals" such as top politicians, senior civil servants, etc., who should have known it was stupid.

It wasn't the "idea" of means testing the WFA that was the problem. If they'd initially given it more than 20 seconds of thought, they'd have come up with a better way of means testing at a more sensible threshold.

Quite simply, it affected too many people.

By contrast, relatively few would be affected by an increase in age for free prescriptions as relatively few are aged between 60 to 67 AND not already receiving free prescriptions.

Likewise, relatively few pensioners will be working over the NIC exemption age, and many of those working will be part time and not earning enough to be liable to pay NIC.

Likewise not many pensioners will have homes that would fall within a new higher CT band.

There'll be an outcry about anything any party does, but the main thing is that the protesters will struggle to get widespread support if the change is considered "fair" by the majority.

The WFH was widely regarded as unfair and stupid, hence the outcry. It was entirely avoidable. Likewise the recent PIP changes - they got it wrong AGAIN hence the outcry. They need to start thinking about what they're doing and stopping making changes on the hoof based on sixth form debating society level of politics!

It wasn't the "idea" of means testing the WFA that was the problem

I think it was hence why the threshold is now so high

By contrast, relatively few would be affected by an increase in age for free prescriptions as relatively few are aged between 60 to 67 AND not already receiving free prescriptions.

Likewise, relatively few pensioners will be working over the NIC exemption age, and many of those working will be part time and not earning enough to be liable to pay NIC.

Likewise not many pensioners will have homes that would fall within a new higher CT band.

If it hardly affects anyone how will it save much money?

Of course they will because that’s precisely what’s happened.

I can accept that but others won't.

I agree - what has changed is the length of time people are living - all those retiring doctors, nurses, civil servants going to get a pension for decades longer than was expected when they started in their jobs. Then there's state pension - people living to 100 that's a lot of dole outs.

A big YES to challenging the black economy. Not just tax evasion, but the benefit fraud and CMS evasion that sits alongside it.

The tax authorities used to be "hot" on regular inspections on businesses, different types of inspection for income tax, VAT, payroll, etc. The amalgamation of the different tax authorities and the widespread closure of local tax offices has meant people have no fear of being caught out anymore. Just like how shoplifting has become more widespread. Without proper policing, more and more people ignore the rules because they don't fear being caught anymore.

And that's before we get onto the illegal "shop fronts" laundering drugs money, i.e. Turkish barbers, nail bars, american candy shops, mobile phone accessory shops, kebab and dodgy takeaways, and hand car washes.

Lots of small changes add up to big amounts and less likely to damage the economy.

It’s not so music the tax rises it’s the lack of real reform of any of the problems of the overly complex tax and pensions systems that bothers me.

Dan neidle reckons like guardian that higher rate income tax threshold freeze bejng extended is a racing certainty.

Everyone having an id card would help to sort the black economy.

Worth the money in the long run.

Lots of small changes add up to big amounts and less likely to damage the economy.

Well the main drivers will be changes to income tax and VAT. increased CT bands for 5m homes really won't raise much.

Yes and nobody has ever run a really successful wealth tax. ‘Small’ or untried tax changes can result in big adverse consequences. People with DC schemes already aren’t saving enough so I really hope they don’t fiddle with pension contribution tax relief personally.