Tax Increases after Corona

[lemongrassmartini2021]

Anyone have any ideas what tax changes we might see post Corona. Increase in income tax? Inheritance tax? VAT? Corporation tax? Stamp Duty?

Obviously no one knows until there is a budget announcement but just wondered what people thought.

The 12% higher rate is dissuading people from downsizing when their children fledge which adds to the housing shortage

That would be true if the vendor paid the stamp duty, since they don’t this is clearly nonsense.

And to those who think pensioners should pay NI, bring it on - I’d be perfectly happy to pay 12% on some of my income rather than 20%.

I’d fully expect some kind of ‘Fat Tax’ to be levied on crap food as per recent comments on the link between obesity & Covid.

And to those who think pensioners should pay NI, bring it on - I’d be perfectly happy to pay 12% on some of my income rather than 20%

I believe the poster was suggesting both income tax and NI.

Time to get rid of the house of Lords. Their allowances are obscene. Same with the Royals.

I believe the poster was suggesting both income tax and NI

I know. NI is deducted before tax.

Just in case someone wants to disagree with me.

www.which.co.uk/money/tax/national-insurance/national-insurance-rates-ajg9u9p48f2f

I know. NI is deducted before tax.

Do you mean that an individual who pays class 1 NIC's will start to pay this before they start to pay tax? Because the PT is lower than the PA?

Just in case someone wants to disagree with me.

That doesn't say anything about the order in which tax and NIC are deducted. You may start to pay NIC at lower levels of income subject to your PAYE tax code, but there is no "order". Paying NIC doesn't reduce your income for tax which is what you were suggesting. Both are based on gross/taxable pay.

That doesn't say anything about the order in which tax and NIC are deducted

It does actually:

National Insurance is calculated on gross earnings (before tax or pension deductions) above an 'earnings threshold'

But as I say, the NIC doesn't change the amount of tax - neither affect each other in any way. Your earlier posting seemed to suggest that one affected the other which isn't the case.

It does change it ~bangs head on table~ if NI is deducted from gross, pay, then tax, the taxed amount will be the net after NI is deducted. Same as pension contributions. Everything’s taken off before tax is applied.

It does change it ~bangs head on table~ if NI is deducted from gross, pay, then tax, the taxed amount will be the net after NI is deducted. Same as pension contributions. Everything’s taken off before tax is applied.

That's not the way it works at all

Not all pension contributions are deducted from gross salary, some are taken from from the net pay and the tax relief is provided by the pension scheme.

It does change it ~bangs head on table~ if NI is deducted from gross, pay, then tax, the taxed amount will be the net after NI is deducted. Same as pension contributions. Everything’s taken off before tax is applied.

You're understanding is fundamentally flawed. NIC doesn't come off income before tax.

It does.

I’ve even given you a link to prove it. Do you actually understand what gross salary means?

Do you actually understand what gross salary means?

Do you actually understand UK taxation? Do you know how you would calculate the net pay of someone with a salary of £25,000, for example?

Do you actually understand what gross salary means?

Do you? I've been an accountant in practice for 37 years. Your link proved nothing of the sort.

Gonna be taxed till our pips squeak.
Household income of 98k so bring it on. Time we paid more tax anyway!

Time we paid more tax anyway!

You've always had the option to pay more tax voluntarily.

Sunak has already stated self employed who pay smaller NIC were helped during Covid crisis but he said if that group wanted to benefit during crisis he would be looking at adjusting so that all pay class 1 NIC. That will claw back a bit of money. They should make sure they ho for corporate tax evaders hard. I think VAT might go up. I hope they won't freeze public services salary again. If they do this it will hit NHS, teachers, civil servants, police, prison officers, local government workers. Basically all those key workers who carried on working during pandemic. They are easy targets though s government pay them.

@caringcarer the government announced today that pay rises for public services will this year be 1.5-2.5%. Less than inflation again.

Billywilliam -

As Kazzy said, you can pay more tax if you wish. This is a letter in the Guardian:

S
usan Reynolds (Letters, 28 September) says: “I want to pay more tax for the public services I enjoy.” She might be relieved to know that she may do so simply by sending a cheque to HMRC. I understand that you can even specify where you would like to see that money spent. Interestingly, the government releases those figures on an annual basis, and it appears that 15 people have done so in the last two years. This makes me think dissemination of the exact process for making voluntary tax payments is perhaps a public service you may care to take up for the convenience of your readership. HMRC has (for some reason) neglected to promote this course of action on its website as heavily as one may have expected. I wonder why?

Come on, Im only humsn!

Of course! All had to be paid for . So higher taxes. Or print money do inflation hits the poorest. Or national debt to pass onto our children and grandchildren who are the ones suffering most now anyway 🙁

@Nikhedonia yes, I'm aware people pay more tax on £60k than they do on £30k. But that wasn't what I said. If a couple both earn £60k each, both salaries are taxed, they don't get a free pass on contributing on one because the other contributes. They both contribute, they both take out. If a single person earns £60k they contribute as a single person and take out as a single person. If a couple have a single earner on £60k they essentially get a free pass on contributions from the none earner. So only one contribution but two taking out. Ditto if you compare £30k salaries or £200k salaries.

My point is that if we're increasing contributions, we should also be placing the same duty to contribute on everyone that possibly can, not allowing people to opt out.