Hi all. Please see the petition which Josephine referred to earlier - it can be accessed via the facebook page she has set up.
My husband also wrote the following - he is absolutely livid with the government. He said he voted conservative this time(has voted 3 times in his life, twice for conservative, once for labour) but will never vote for tory again.
Our family - a higher rate tax payer dad, a stay at home mum (her annual salary wasn't sufficient to cover childcare costs / school clubs for our 3 young boys) and our 3 boys - fully support this petition.
I should also highlight the following policies which also impact on families where at least one earner pays higher rate tax. These policies have recently / are due to take effect. Although not all announced by the Coalition Government, they certainly had the opportunity to reverse them in June's Emergency Budget:
- From April 2011, an increase of 1% in the rate of National Insurance contributions paid by a higher rate taxpayer - for us, this results in additional contributions of £650 per annum.
- An increase of £1,000 in the personal allowance for basic rate taxpayers but not higher rate tax payers. A saving of £200 but not for us.
- A reduction in the tax relief on childcare vouchers for higher rate tax payers from April 2011, costing £640 per year.
- An inrease in fuel duty from 1 October and an additional increase in January 2011- I drive 90 miles per day to get to work and back (public transport takes 3 hours each way). Including VAT, that means an additional £110 per year.
- The government have also not ruled out the current tax relief on pension contributions given to higher rate taxpayers, altough this currently wouldn't impact us.
The government announced today that there may be a transferrable tax allowance for married couples. Well, the Conservative manifesto included a transferrable tax allowance of £750 - guess what, this is not for higher rate tax payers. It will save basic rate taxpayers £150 per year.
Of course, the government can do what it wants,and to whom it wants. However, I urge every higher rate taxpayer with a recognised qualification to consider what we are actually going to do and what many companies are considering - take your tax base away from the UK. Australia, Canada, the Middle East - they have very generous income tax systems for people who will be net contributors to their economy. I have an interview next week for a role in Australia. Just for background: Like a lot of people, we have inherited £0 wealth - I am the son of a docker, my wife the daughter of a miner who striked in the 80's. We don't have the luxury of being able to save our child benefit or spend it on outings for the children - ours goes towards buying their clothes from Asda / Tesco and their food from Aldi.
Finally, can the Coalition Government agree that when this crop of children are tax payers in 20/30 years, they do not need to contribute towards the state pensions of those adults who so fervently support your current policy?
Mr Cameron, you and your government will have a major impact on our family and similar families to us, including grandparents, whose grandchildren will grow up in a foreign country.
Margaret Thatcher Milk Snatcher, David Cameron Family Basher.