Tax changes - are you better or worse off ?

[throckenholt]

Just listening on the news that only the top 20% will be worse off. I had never realised before that I am that well off to be honest !

I think we will be about £250 worse off if the online predictor things are right - we have 3 kids, 1.3 FTE salary (both work part time) with a middling salary (average about 40-45K between us). I think the money we will lose will be from falling off the top of the child tax credit limit (just).

I don't particularly expect handouts from the govt at my level of income, but I was surprised that our income puts us as high as the top 20% - I would have thought a bit above the middle. There must be a very long tail stretching out to the high earners.

It made me wonder roughly how many others are similarly unaware that they are classed as the wealthiest 20%.

[LittleWhiteWolf]

£500 better off apparently.

[minipie]

We're going to be about £3500 worse off.

[Niceguy2]

Yahoo News Link

Apparently according to the IFS, the budget "will slightly weaken the incentive to work at all"

Oh deep joy!

[adamschic]

Anyone who seriously thinks they will be better of unemployed should go the the benefit calculator, you really wouldn't be.

[sieglinde]

Of course not, adamschic - I've been on benefits in the past, and it sucks - but I might be just as well off going down to part-time and claiming Family Tax allowance. Then I'd drop below the new higher tax bracket.

[minipie]

adamschic I wouldn't be better off financially, but I'd have a lot more time. And if so much of my income gets eaten up in tax, I might well decide to be a SAHM and have much more time at home.

[UndercoverWorker]

£409 better off. Better than a slap in the face with a wet haddock but not much.

[GabbyLoggon]

I think its negative with me. Rising cost of living is a big thing with those at the bottom of the money pile.

[adamschic]

Seig, has always been the case though. The reason I work 4 days a week and have done since CTC/WTC came in is because I would have been no better off working 5 days. Also, the benefits to my sanity having a day off during the week to laze around organise stuff has been invaluable.

I'm out of the system next year so will miss all my lovely benefits, i.e CB/WTC and CTC and have to work full time.

[sieglinde]

Yes, adamschic, but in my job if you drop to part-time you can absolutely copper-bottomed never go back to full-time.

[hogsback]

£3,000 worse off according to BBC calculator. We are now in the unenviable position of having negative (K) PAYE codes.

[naughtymummy]

can I ask what is a negative PAYE code ?

[work84]

Worse off here too.

[noodle69]

Our household income is 21.5k and we will be £416 worse off with the tax credits cut for childcare. Not too bothered though just have to cut back on a few bits.

[noodle69]

Thats with our household income with us both doing 70 hours between us to and we have never claimed help with housing or benefits except for tax credits towards childcare. I think 45k is a huge income. We pay £625 on a mortgage for a flat with no help towards costs, and we are both on near minimum wage. Its not that hard to do I dont think. It depends though on what your lifestyle is like some people I have seen on here think some things they buy are 'essentials' when they definitely arent!

[Meglet]

£1k a year worse off.

The Con-dems just love lone parents .

[Want2bSupermum]

Luckily I am not a UK taypayer anymore and will pay around 12-15% income tax this year on our household income (we live in the US). When I lived in England I was a higher rate taxpayer after graduating from university because I worked three jobs. I do think the current tax system is unfair due to:

1 - Those on a low income receive benefits/credits which are not included in their income. A family earning GBP20k a year will get help towards their housing costs, council tax, nursery costs, tax credits as well as other benefits. While they may earn GBP20k a year their real income is much higher.

2 - Those in the higher income bands often have much higher expenses. Our friends wife is a barrister and as they both work long hours they will need a nanny when she goes back to work. Their household income is around GBP150k a year and the nanny costs them around GBP30k a year after they have paid all the taxes and cover for vacation. To bring in that kind of money they each work crazy hours, have more strict dress requirements (their dry cleaning bill is about GBP100 per month) and have a cleaner who comes in twice a week. Between them they still have around GBP45k of student debt left to repay. Her husband was recently offered a job here in the US. Shockingly they would be taking home more with only him working and the gross salary is less than what he makes in Edinburgh.

I do think the tax system should be changed so disposable income is taxed (income including benefits and credits received after rent or mortgage interest, nursery costs, pension contributions and cost of living deduction for each child you are supporting plus yourself). The cost of living deduction should be based on the postcode of your primary residence.

[LouMacca]

Just under £750 worse off. £500 of that is the loss of child tax credits. We won't be having a foreign holiday this year, hopefully we will get a good summer here!

[HarrietJones]

£20k won't get housing/CT benefit etc surely? I used to earn 15 as a LP and was only entitled to TC.that was the point I would have been better off not working as my dds would have got free school meals/ uniform etc.

[HarrietJones]

about 6-7 years ago btw not now!

[tazmosis]

£700 worse off. :(

bracing ourselves for Jan 13 when we'll be further circa £1500 pa worse off!!

[happybubblebrain]

I think nearly everyone would feel better off and they should be able to save money if they lived a greener lifestyle i.e. didn't own a car, became vegetarian and were clever about their food shopping, bought everything second-hand and sold on things they don't need, cut their gas and electricity bills by turning everything off when possible etc etc. Just an idea.