To ask how much you think income tax will rise by?

[Wonderofwimbledon]

We’re absolutely financially at our limit… I’m so incredibly stressed. An income tax rise will break us and we won’t be able to afford it. We won’t have money to eat.

What do you think it’ll be? I just want to curl up and cry- we can’t take anymore increases our bills , mortgage everything has increased we have no spare money at all

The sensible thing to do would be to increase basic rate of income tax by 3% and drop employee NIC by 2%. This would raise about £15bn but employees would only see a 1% increase. And 1% on the hurt and top rates would bring in about another £5bn and giving everyone child care, child benefit for all parents and everyone a personal allowance.

Thats the sensible thing to do. Will they do it? Who knows.

I think the definition of “working people” is important. I’m expecting the higher rate tax to drop to £45k, Google say only 6 million people earn over that so in simple terms if the change this

£5k @20%x 6m increased tax take of £6bn

I'm sorry, op. It sounds really stressful. It feels like a long time until we actually find out which of all the circulating tax hikes will land. If it's any consolation, they won't be able to tinker with income tax till April, so it won't just land on you from nowhere.

I think people are becoming more and more aware how much more tax they pay when thresholds are frozen. I think a few years ago they could have got away with this without people really noticing but not now.

So you’re only a working person if you earn over £45k?.

edited for typo

No, apparently there's to be a new definition of working person, limited to those who earn under £45k 🤷🏼‍♀️

It REALLY fucks me off that this term ‘working people’ is to exclude people who work incredibly hard, just because their position pays a higher salary. It’s SO insulting and divisive.

We've had below inflation pay rises every year for the 15 years I've worked in the public sector. I work in an income generating role and bring in about 5x my salary each year. If they squeeze me any more I'm jumping ship to the private sector. I think we've all been squeezed dry.

The treasury have introduced the concept of those earning £45k or less as “working people” that need more protection from shouldering the burden of tax increases. I think it’s very likely we’ll see a blanket increase of 2-3% on income tax and a corresponding decrease in employee nics as mentioned up thread.

im hopefully they’ll increase the number of council tax bands so that those in very large, very expensive properties are separated out and pay more.

So rather than adding 2 p for example to everyone’s income tax they would drop the higher rate to 45k and do it that way.

oh I feel so so stressed - we have zero flexibility- bar selling a kidney 😩 a few years ago our food bills were lower, our mortgage , everything from petrol, swimming lessons for the kids and it’s skyrocketed so we have no buffer.

are there others out there the same?

I think a rise is 100% going to happen my question is will it be a permanent thing or just temporary? I’ve just secured a job with a 25% payrise and I’ve put into the calculators this means an extra £150 a month tax for me if it goes up 2% for me it’s ridiculous. I am absolutely furious about the state of this country. We’ve cut back where we can and know that holidays etc are way out of the question for 18 months or so. I am so pissed that we can’t get dental or GP appointments, our local roads are overgrown with weeds and pot holes. It’s time they scrapped the 20+ % that goes in the civil service pension and I say this as someone married to someone who has done 35 years service. There’s so many ways this country could be better. I am glad my grandparents are no longer here to have to suffer the burdens of our living elderly.

But in this scenario, presumably they’d have to change the NI thresholds also, to avoid a 48% tax rate between £45-50k?

Not that the government seem that bothered by tax rates going up and down (see £100k threshold), but it would be strange to implement.

This “definition” has been floating around and that old trope “those with the broadest shoulders” middle class are going to be crucified for tax

Out of interest, how did you vote last year?

I though the rumour was less NI and more income tax so it wont be as harsh on a lot of people who pay both.

Oh don't be that person..come on. I can't abide the Labour party, but clearly to op is distressed.

We have just started charging us at our council for our green bin, do they collect it weekly

This is us - technically middle class professional jobs, but by the time we’ve paid just the basics we have nothing left- I wouldn’t describe us as middle class.

I genuinely feel we’d be better of sacking work off and living off benefits - we can’t live like this.

They should crucify everyone simultaneously.

At least that would feel a bit fairer.

Penny on the basic rate.

I like the idea of the NI/tax swap to get pensioners paying a bit more equally too.

Also what is the electric car tax in 2028? We have an electric car as they told us to get one and now we might be taxed? DH drives a long way to work so that’ll screw us over. It just gets worse ☹️ maybe I need to stop listening to news . Feel like I will have a panic attack

oh really? Missed that somehow. That clearly makes zero sense (to me!).

so what are the people called who earn over that?!

Don't be stupid. No you won't. You also don't get any help with your mortgage on UC.

OP I feel your pain, I worked out our increase based on a 1% rise and it will mean we have to cut back on our remaining luxuries. Worth it for decent public services in the long run but I remain to be convinced that will happen. Personally I wish they would sort out the inheritance tax loopholes and raise that instead.

I wish they would just get on with it, all this speculation is causing so much worry and is just cruel.

I didn’t vote labour but im not getting into politics over this, I don’t vote a main party. And - even people I know who did vote labour are worried but I don’t want this to be a political post

Yes, sack off work and get £100 per week, and be expected to look for work for nearly 40 hours a week or get threatened with sanction.

Some people need to stop watching re-runs of Benefit Street and live in the real world.