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

Yes that explains what I meant. I’m confused by the stupid definition and wondering what I’m called basically. It suggests if you earn over £45k then you are not working people.

I’ve seen this rumour but doubt it would happen because of the disproportionate impact on pensioners.

I think we will see similar tax rises as in scotland, which people have generally accepted and voted for as far as I’m aware, so +2% for higher rate taxpayers or something like that.

What I don’t like is the assumption that higher rate taxpayers have ‘broadest shoulders’. In reality, earnings peak in middle age because people progress their career and this is because they have more pressure on them to earn: typically a mortgage and children/young adults to support, perhaps a partner to if they are in a caregiving role to young children

I’m in the above category. My outgoings are eye-watering because I have multiple people to support. Any siphoning away of more of my income ‘because NHS’ is taking away the support I give to my family.

This is me, too.

The government genuinely don't have their spending under control so paying more tax to bail them out is ridiculous.

As a PP said - Labour don’t think of us as people. All they’re concerned about is their ideology.

In reality there will be a hit to working people because attempts to lower government spending (pensioner perks and pip) have been met with vicious opposition and u-turns. Working, middle-income people are the only sitting ducks without some kind of quango or charity to plead our cause to MPs or get major newspapers to run campaigns for us.

2p seems to be what most financial institutions are saying.

Being glib, at least they cant come for your savings

Mugs who’ll pay more tax.

income tax going up by 2p

Yes, but they can force you to use them to keep a roof above your family’s head.

This person had no savings! It was a silly joke.

Ah I see 😞

But they do also tax your savings - or at least the interest. If you do a tax return you have to declare the interest on your savings so they can come after that too. Utter bastards.

@Wonderofwimbledon - you may have missed my question yesterday - but does you employer have a salary sacrifice scheme for either pension, annual leave buy back or cycle to work?

And are you on the old childcare voucher scheme? If so, do you claim the full amount?

I watched a podcast the other day about where the 'new' black hole has come from. I can't remember it all but it was things like interest on goverment debt increasing, growth being less than anticipated, RR budgeted in to have welfare cuts and then didn't go through with it. Also not only did she not cut welfare, more people are claiming now than a year ago.

Yes this makes sense

Interest from savings is considered taxable income. That shouldn't come as a surprise to anyone. It's been like that for years

Keeping it strictly practical, in real terms you will need to dispose of any assets to create liquidity. This would likely mean down-sizing your house, are you equity rich? If so can you remove 300k and port your mortgage to a cheaper property? You could put the cash in a high interest account and use to block pay the mortgage in chunks (find out how much you can pay for once). Doing this removes lots of the compound interest.

Well, they do care about ideology until they don’t. They still haven’t given a penny of private school vat to state schools. Actual daylight robbery.

I'll be really surprised if there are not some cuts to benefits too though. The markets have reacted favourably to hearing RR saying she will raise taxes. If she cuts costs too this will be another thumbs up from the markets. This means the UK will be viewed as taking steps to get back to financial viability and in turn the goverment cost to borrow will fall.

Lower interest rates on our borrowing would help RR greatly.

I think pensioners will be hit too by changes to NI and also don't forget lots of them pay tax as well on their final salary pensions so they will be caught up in the tax changes. Also if she changes council tax banding and introduces a property tax lots of them will be impacted by this. Only the poorest pensioners will escape the changes.

I'm in a weird position of not being a pensioner, not earning anything and not paying any tax just now (well except council tax, vat etc) so I don't have biased views or anything. I will be hit though by changes to pension relief and removing tax free lump sums etc as I approach the age I can start claiming my private pensions. Currently living on an inheritance which luckily I got before she tampered with that too. However she is messing up the economy. I worked up until very recently and was thinking about getting a new job - probably part-time but the thought of funding more benefits for others has put me right off. I have a private dentist and had to go to a private GP recently as couldn't get a NHS GP appointment despite trying. I have no faith in this goverment to use extra money raised wisely. If I saw her cutting benefits etc I would be more likely to look for a job to be honest. Not because I get benefits and would be impacted, but because I would feel taxes would be used better.

Don't panic about this it's just an idea that is being floated and it's difficult for them to push through given the environmental pressure we are under. Anything that makes the switch to electric car use unpalatable will cause political issues for them on the global scene.

If you have an electric car then your transportation costs will be MASSIVELY lower than if you were running a diesel or petrol car. I'm assuming you're on a cheap EV tariff. We pay just over 6p a unit overnight so 4/5 times lower than standard cost.

If you do 10,000 miles pa and they did bring in the 3p that's being floated then the cost is £300 per year. I appreciate everything extra is problematic but it is a relatively low charge that is being floated.

Not only that, when they put up Er’s NI (and dropped the threshold at the same time), schools were supposed to receive an additional ‘grant’ to cover the cost. Our school’s additional NI bill was only 84% covered, so they took money out of the schools budget without saying they were taking it out.

unless the housing market does what it did in 2008 and stalls with nobody buying or selling unless they have too. (I remember it well - I got divorced over this period and had to sell at a 55K loss on what we paid on it. We had made money on earlier houses and thankfully I got back on the market before prices went back up)

Round here I am seeing lots of reductions on prices but that might just be because people are waiting to see what happens in the budget. It might all take off again after the budget but who knows

If people lose their jobs (or their benefits) some might be forced to sell pushing prices down further. It's all a bloody mess.

This would be insanity. You’d have to have income tax on any income of at least 65%. Can you imagine how workers would feel about that?