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%.

[Hatterbox]

We're going to be £1,370 worse off.

[Chil1234]

@throckenholt. This year's drop in the HRT threshold is unusual. Normally, the tax thresholds and personal allowances all move up a little each year. So, if you get a cost of living increase, you stay under the threshold. And even if a pay-rise means being worse off short-term I think you have to take the long view and see it as a stepping stone to better things.

[FriggFRIGG]

we will be £627.11 better off

but we are on a single income of 17000 before tax with 2 DC's so we really would be totally screwed if we lost even a tenner a week...
and our rent might be going up next month

[IsElmoMaleorFemale]

So what happens to all these people who will be struggling even more than before now? do they just turn a blind eye?

[pastagirl]

we will be 1,560 pound worse off, we are 600 pound over the 40 grand limit. if we reduced our wage we would be better off. so if i asked to drop a few hundred pound to you think my employers would think that strange?

[IsElmoMaleorFemale]

Ha ha, thats a good idea, and surely they wouldnt mind as it would be saving them £600!!

[ploddingalongnicely]

I dont understand how i am worse off when i'm a LP on 7k a year...

[wubblybubbly]

pastagirl, ask about salary sacrifice.

[fifitot]

I think I lose my £90 pm tax credits from next month. Not sure how much I will gain with tax changes. Will now do childcare vouchers if I can get them at work.

[JennyPiccolo]

We'll be slightly better off. Clearly benefit scum, here.

Actually, i wish we were benefit scum, DP can't even get dole money.

[hogsback]

naughtymummy it's when you don't have any personal allowance and owe tax from last year because they gave you the wrong tax code last year :( Over a certain income (not sure how much) you don't get a tax free personal allowance any more and they tax you at 50%. If I was bothered about money I suspect I could employ an accountant to do clever things.

[bitsyandbetty]

£8.13 better off but not sure how perhaps underestimated petrol. We don't smoke and drink very little alcohol though.

[angrymomma]

I don't understand how I am losing £70.00 per month!

Earnings just under £15,000, no childcare to pay

3 DCs age 9, 4 and 3.

Went to cash machine today and it was £70.00 less than normal. Am not happy!!!

[BoffinMum]

If it's any comfort, I remember sobbing to my accountant about how hard up I felt compared to everyone else locally who had nice cars, sent their kids to private school, had skiing holidays and so on. I explained I worked hard and earned a good living, but couldn't see how they managed to live like that.

He replied, "Boff, they can't. Believe me, I see all their accounts."

Very salutory.

[doley]

angrymomma that does not sound right at all ~sorry to hear that .

[Iggly]

Sorry coming back to this late - yes I could get a stamp duty exempt house but I'd have to sell my place which isn't exempt. I can't buy without selling.

[Niceguy2]

@Pastagirl, i agree with Wubbly. Before you go & ask to have your salary cut, you may want to see if your firm does any salary sacrifice stuff. I know I can "sacrifice" some of my salary for increased company contributions to my pension. Or even for a laptop (albeit at a very inflated price). Still I'd rather have a shiny laptop than pay any more taxes to the bottomless pit which is our tax system.

[haymichpink]

I don't work, my husband does, earning £32,000, we have taken a drop of £150 a month! It isn't that much I guess but when you have a profoundly disabled son it does affect us! I can go out and buy a bike for my older 'normal' son for under a hundred pounds! We have just had a quote for £1,552 for a specialist bike for our disabled son!!!!! That's just one example of the money we have to pay for equipment that isn't covered on the NHS and even stuff that is funded is one long fight to try and get! I really thought that Cameron would have some empathy with families caring for disabled children having had a disabled child of his own but I was wrong!

[161070harris]

I am a single parent, i work 37 hours a week, i earn less than £20'000 and i have had my tax credits cut by £22 a week!!! and i am struggling. How on earth am i supposed to take my child out to your lovely new sponsor (West Midlands Safaria Park at £48.47 a go!!!!

[sakura]

seglinde! this was genius
"They like those on 150k plus, people like themselves, and they have little snivelly Dickensian reveries about the poor so they can sleep well at night. "

[angrymomma]

Is anyone actually getting any extra money? And if you are, how?

I really don't understand how they can suddenley whack so much off folk who they deemed at one time to be entitled to it.

[GrendelsMum]

It's a cliche, but I think it's true, that you can't judge a person's income from their expenditure. Some family members are very well off , but I can tell you that they have one elderly car, go most places by bike, live in a slightly run-down 4 bed house, and, if we want to meet up, usually suggest taking a couple of sandwiches and having a picnic in the park.

They recently came into another £500k tax free and it made no difference to their lifestyle - we can only guess that they either gave it away anonymously or it's been put in trust for grandchildren.

[fifitot]

Is it the case that changes in tax will mean more money in our pay packets? I ask this as am very confused. Just had the letter confirming we will be not getting tax credits now - that is a £90 pm loss which will be a significant one I can tell you!

I think I can get childcare vouchers - will that help do you think? I know will pay less tax, but as much as £90 less? Anyone know how it works.