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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

AIBU Income Tax rise.

627 replies

H202too · 30/10/2025 09:56

To be panicking about income tax rise.

Things are tight and to loae even £30-60 a month will be difficult.

I know people are talking about the mansion tax being a no go. But I would prefer this than taxing the workers as per usual.
The tax free rate should be put up. What a mess.

OP posts:
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Allergictoironing · 31/10/2025 11:36

Another pet peeve of mine is how inflation is calculated. I think there needs to be more made of the costs of the most basic daily requirements as opposed to the overall requirements e.g. food, utilities etc as opposed to figures that include "big ticket" items.

There also seems to be a discrepancy between the figures published and the observed impact on bills e.g. the ONS seems to state that the cost of food items has actually dropped in the last month (-0.2% over the last month), yet I only see my food bills increasing? And my grocery bill has definitely increased more than the 4.5% quoted by them for the last year.

I know these items aren't the largest part of most people's bills, but they are things that we have no choice about paying & there are limits to how much they can be cut back on.

coldiris · 31/10/2025 11:37

What bothers me is why the government is never looking to raise taxes for all those transnational corporations, banks and tech firms which are making billions and always avoiding taxes through some loopholes and registration of their HQs in some offshore or tax beneficial jurisdictions? Yes, fine, it's not that easy to close every loophole but it is easy to tax them. The rule should be simple: make money in the UK = pay full UK taxes in theh UK and we don't care where your HQ is registered and what loopholes exist. Why is this never a conversation to close the plughole in the public finances?

Bluegrassdfly · 31/10/2025 11:41

coldiris · 31/10/2025 11:37

What bothers me is why the government is never looking to raise taxes for all those transnational corporations, banks and tech firms which are making billions and always avoiding taxes through some loopholes and registration of their HQs in some offshore or tax beneficial jurisdictions? Yes, fine, it's not that easy to close every loophole but it is easy to tax them. The rule should be simple: make money in the UK = pay full UK taxes in theh UK and we don't care where your HQ is registered and what loopholes exist. Why is this never a conversation to close the plughole in the public finances?

You haven’t heard about Pillar 2 changes then?

Raising taxes on multinationals is not something the UK can do as a standalone entity. It needs to work with other countries to change this. It has been working hard to do so. But guess what? Corporation isn’t a large part of our - or any other country’s - tax system. People seem to think this is the answer to our black hole. It isn’t. Rising income tax, NICs or VAT is.

coldiris · 31/10/2025 11:47

@Bluegrassdfly they always find a way to tax people though, no matter how tough. Where there is a will, there is a way. I am sure it's not that easy to tax them but I am also sure that it can be done. For example, in America, some of these multinationals get tax rebates in the states where they pay no taxes! How is that even possible but it is! If they can't tax them on everything, then they should find a way of increasing their taxes on something just like they do with people. Why should millions of people who earn nowhere near corporate billions pay more and more tax to plug holes in public finances? I don't frankly believe all these stories that tell us it's hard to do or impossible to do. It's just a nice fairytale that I am sure is fully supported by corporate lobbyists who seem to have every government in their deep pockets. How hard can it be to calculate how much money, say, Amazon makes in the UK? Why do we need to care how much they make in France, Germany, Italy etc? We don't. Just pay full taxes on what you make in the UK and find a way to account for your costs that may have occurred elsewhere and the burden for doing that should be on them, not on the government.

LuckyBluePhoton · 31/10/2025 12:16

Tax the Buy-To-Let sector monthly rent Scumbags

TwistyTurnip · 31/10/2025 12:35

LuckyBluePhoton · 31/10/2025 12:16

Tax the Buy-To-Let sector monthly rent Scumbags

They won’t do that though will they, because a lot of the MPs own buy-to-let properties.

Chess101 · 31/10/2025 12:43

80smonster · 30/10/2025 10:05

Interesting, when this has been discussed previously, the majority on MN said they wanted to pay more tax for better services? That is what many opined during the private school VAT raid. Now the raid is on everyone’s pockets - we aren’t so keen? What a surprise. I’ve said it hundreds of times, but I’ll say it again: you’ll all have to pay. Taxation is for the many, not the few. Scandinavian countries where services are robust take more money from low and mid earners. I couldn’t be less shocked that Labour will be going after everyone…

Well said. Everyone needs to pay up.

SpaceRaccoon · 31/10/2025 12:44

LuckyBluePhoton · 31/10/2025 12:16

Tax the Buy-To-Let sector monthly rent Scumbags

They'll just pass the cost on to renters.

Bluegrassdfly · 31/10/2025 12:45

LuckyBluePhoton · 31/10/2025 12:16

Tax the Buy-To-Let sector monthly rent Scumbags

Are you a renter? Because research as shown that any extra taxes on landlords are passed directly on to tenants in the form of rent rises. Impose extra taxes on landlord and you impose extra taxes on tenants.

Bruisername · 31/10/2025 12:48

But this also punishes landlords who may have one or two properties rather than the big corporates

we Have a rental because we had to live area but we intend to move back when we can. It’s not about making money but more about not losing money!! We already pay a crazy amount of tax on that rental income

MO0N · 31/10/2025 13:27

Bruisername · 31/10/2025 12:48

But this also punishes landlords who may have one or two properties rather than the big corporates

we Have a rental because we had to live area but we intend to move back when we can. It’s not about making money but more about not losing money!! We already pay a crazy amount of tax on that rental income

Land lording is an investment activity, the real profit comes from the appreciation of your asset. If you happen to make a profit from the rental income that's just a cherry on the money-for-nothing cake🍒

TwistyTurnip · 31/10/2025 13:35

MO0N · 31/10/2025 13:27

Land lording is an investment activity, the real profit comes from the appreciation of your asset. If you happen to make a profit from the rental income that's just a cherry on the money-for-nothing cake🍒

To be fair to landlord, it’s hardly money for nothing though is it? They need to work to be able to afford a buy to let property or have enough income for a BTL mortgage in the first place. Plus there’s all the hassle and agro that comes with being a landlord. My MIL rented her house out once and has sworn never to do it again because of all the stress it brought her.

BIossomtoes · 31/10/2025 13:41

TwistyTurnip · 31/10/2025 13:35

To be fair to landlord, it’s hardly money for nothing though is it? They need to work to be able to afford a buy to let property or have enough income for a BTL mortgage in the first place. Plus there’s all the hassle and agro that comes with being a landlord. My MIL rented her house out once and has sworn never to do it again because of all the stress it brought her.

The BTL mortgage is paid by the tenant. I rented my parents’ house for a short period. Obviously the house cost me nothing, the hassle was minimal and it appreciated during that time. Zero hard work, zero risk. It’s money for old rope.

Bruisername · 31/10/2025 13:47

BIossomtoes · 31/10/2025 13:41

The BTL mortgage is paid by the tenant. I rented my parents’ house for a short period. Obviously the house cost me nothing, the hassle was minimal and it appreciated during that time. Zero hard work, zero risk. It’s money for old rope.

For us it’s our only home and the rental is to keep it occupied while we can’t. So the capital appreciation is because we own our home rather than BTL

i know a lot of people who move around for work so rent their home out for a few years and they are invariably good landlords. If my tenant has an issue I sort immediately because I don’t want my home to falling into disrepair (not that I wouldn’t anyway but the motivation is different)

it just feels like being a landlord is great if you are a big corporate or an unscrupulous landlord!!

ThisTicklishFatball · 31/10/2025 14:00

It seems there's a lot of negativity directed at the middle class, upper middle class, pensioners, farmers, genuinely disabled individuals, and those over 50. The Mumsnet crowd sure knows how to take jabs at these groups. Some posters appear to want more and more money from these people purely based on personal vendetta.

Government spending is expected to keep rising, but tax revenue isn’t keeping pace. Taxing more won’t solve this; we need economic growth and substantial spending cuts.

Why not advocate for politicians to give up their pay and benefits, end support for healthy, working-age individuals, discontinue state benefits and free services for illegal immigrants, eliminate free perks for prisoners, ensure that aristocrats contribute their fair share of taxes, reduce unnecessary public sector expenses, and promote smarter financial management across the board?

Rachel Reeves and Starmer vowed not to raise taxes, but instead, they should have committed to Labour members giving up their salaries, perks, and properties to fund the gap.

The country urgently needs wealth creation and creators, with a strong private sector playing a vital role. It's important to inspire young people by offering opportunities to build wealth locally. Instead of stifling ambition or success, we should encourage it and support the risk-takers who drive businesses, innovation, and job growth. Building an environment that fosters wealth generation is absolutely essential.

Stop promoting the false idea that wealthy people are bad or that wealth itself is negative. Wealthy individuals make substantial contributions to state benefits, helping to ensure that those who depend on them can continue receiving the necessary support.

Cyclingmummy1 · 31/10/2025 14:06

LuckyBluePhoton · 31/10/2025 12:16

Tax the Buy-To-Let sector monthly rent Scumbags

You mean tax them more? Rental income is already taxed 🙄

SpaceRaccoon · 31/10/2025 14:18

A lot of posters here seem to think we'll create a utopia if the government is just a bit meaner and more spiteful to anyone they perceive as richer than them.

taxguru · 31/10/2025 14:18

Cyclingmummy1 · 31/10/2025 14:06

You mean tax them more? Rental income is already taxed 🙄

No NIC on the rental profits though, so on a "Pound for pound" basis, someone earning from a rental property pays less tax than a worker. That's not right and it needs tackling.

dressinggowns · 31/10/2025 14:22

Why not advocate for politicians to give up their pay and benefits, end support for healthy, working-age individuals, discontinue state benefits and free services for illegal immigrants, eliminate free perks for prisoners, ensure that aristocrats contribute their fair share of taxes, reduce unnecessary public sector expenses, and promote smarter financial management across the board?

What support would you abolish for healthy working age individuals! And where can I get some of this support?

dressinggowns · 31/10/2025 14:24

No NIC on the rental profits though, so on a "Pound for pound" basis, someone earning from a rental property pays less tax than a worker. That's not right and it needs tackling.

Which is ridiculous, the worker should not be taxed more if you actually want to increase productivity

dressinggowns · 31/10/2025 14:25

Rachel Reeves and Starmer vowed not to raise taxes, but instead, they should have committed to Labour members giving up their salaries, perks, and properties to fund the gap.

This would raise billions?! 😆

Labraradabrador · 31/10/2025 14:31

Landlording isn’t the safe bet many of you seem to think - it carries significant risks (house price rises arent inevitable, tenants don’t always pay or take care of your property) and carries a fair amount of responsibility above and beyond owning your own home might. As the risk/reward ratio shifts you see a drop in the number of people willing to make that investment and consequently a drop in supply/increase in prices for tenants.

it would take a pretty significant reduction in taxes / loosening of regulatory barriers for me to consider btl a better bet than stocks and shares.

dressinggowns · 31/10/2025 14:37

Landlording isn’t the safe bet many of you seem to think

I agree, very different landscape to the past. But no investment is a safe bet.

222days · 31/10/2025 14:54

dressinggowns · 31/10/2025 01:27

@222days I have no idea who to vote for anymore & feel no party has represented me for some time. I'm not going to vote Reform though. Why put us back even further.

Same here. I’m homeless in terms of anybody I could cast a vote for, but I certainly don’t think self-immolation is the solution!

Cyclingmummy1 · 31/10/2025 14:57

taxguru · 31/10/2025 14:18

No NIC on the rental profits though, so on a "Pound for pound" basis, someone earning from a rental property pays less tax than a worker. That's not right and it needs tackling.

Because there's no employee to pay the NI 🤷‍♀️

You too could become a landlord, take the risk and pay 'less tax pound for pound'. Or you could have the security of PAYE.

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