Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

News

10p tax change thingy - can someone explain it to me simply please?

40 replies

PuppyMonkey · 21/04/2008 13:09

What's it all about? Am I gonna be losing loads of money now? I work p/t...

OP posts:
PuppyMonkey · 21/04/2008 13:20

bump

OP posts:
janinlondon · 21/04/2008 13:27

In very simple terms, everything you earn that used to fall into the 10% bracket is now going to be taxed at 20%. You may lose money. Depends on how much you earn and on tax credits.

hecate · 21/04/2008 13:28

Yup. Simply put, they're screwing the poor.

Again.

expatinscotland · 21/04/2008 13:36

What hecate said.

My FIL works part-time and draws a small state pension. He had a works pension, but it was mismanaged (BT) and he get fuck all.

My MIL worked as a secretary all her life and never could afford to contribute to all but state pension.

They raised three children, including their lovely daughter, adopted from foster care.

His tax on his PT job as a church groundskeeper has gone up by double.

And to all who say, 'Well, get Pension Credit'. Tell that to elderly people who broke their backs working like donkeys all their lives to fill out some massive form that's confusing as fuck, people who find applying for benefits shameful, and then sit back and wait for the tax credit office to tell them years later they overpaid them and these pensioners owe them all kinds of money.

I never thought I'd hear my ILs say it, but I just spoke to tehm this morning. And they're voting Tory in the next general election (SNP for Scottish elections).

And yes, they distinctly remember life under the Tories - FIL was made redundant twice.

But, as MIL pointed out, 'At least with Tories, you know what you're going to get.'

BIL - single and childfree - is getting screwed by this AND his company, Lloyds TSB, has been bought out and he's being made redundant.

Thanks, Gordon.

You're a twat.

PuppyMonkey · 21/04/2008 13:37

Thanks Jan. Am crap with tax issues and stuff. I don't even know what you mean by "everything you earn that used to fall into the 10% bracket is now going to be taxed at 20%."

OP posts:
expatinscotland · 21/04/2008 13:38

Many of the losers are women - who often work part-time, in low paid jobs or as widows on small pensions.

Keep paying out the rope, Salmond, Crash Gordon's doing a good job of hanging himself.

SaggyOldBagpuss · 21/04/2008 13:39

The first £105 a week that you earn is tax free.

The next £690ish is taxed at 20%

Anything over that is taxed at 40%

Bramshott · 21/04/2008 13:44

Ooh there are so many things that enrage me about this!!

  1. Anyone with sense, including several people I remember discussing it with on here, realised straight away that this was going to make those on low incomes worse off, and was a cyncial headline-grabbing move to say "we've cut the basic rate to 20%", so how come Labour MPs have only just realised?
  1. How can GB / the govt not understand that most people are happier keeping more of what they earn rather than getting more in benefits? And how much simpler and cheaper is that to organise than the massively fucked-up monolith that is the tax credits system!

And that's just for starters!!

I have been wondering whether in the long term this will lead to a reduction in women 'second earners' working - the absolute opposite of govt policy.

I work part time, earning about £12,000 a year so I'll be worse off, but DH will be better off so as a family we'll actually have more money with no need for additional tax credits (thank god!). So of course I don't count in the 5 millions (which is right because I won't be in financial hardship). However, I would still rather keep more of MY money than be reliant on my DH's, and I can't help feeling that when people come to do the calculation of second income, minus taxes, minus childcare = is it worth working? the sums won't stack up and women will be pushed out of the workplace. Does that make any sense?

expatinscotland · 21/04/2008 13:46

and don't forget, Bram, a lot of peoples' NI is going up, too, thus eating up a lot of their tax deduction.

PuppyMonkey · 21/04/2008 13:46

Bastards!

OP posts:
Iota · 21/04/2008 13:47

bramshott -I have just had that conversation with my dh. I ma contemplating going back to work P/T, but after costs for child care, petrol, parking etc it hardly seems worth it - especially after the 10p tax rate goes.

SaggyOldBagpuss · 21/04/2008 13:47

Ni is set at 11% for empoyees, not sure how that is going up??

With that as well you get to earn £105 a week before you pay your NI

Iota · 21/04/2008 13:48

and my poor old OAP mother will be worse off but only just not eligible for tax credits

expatinscotland · 21/04/2008 13:52

My ILs, too, Iota.

They really struggle, too.

They both have insulin-dependent diabetes. MIL has terrible rhematoid arthritis, too.

Not like they can just go out and get jobs to top up their earnings.

I wonder if Labour/GB realise just how much they have pissed off millions of pensioners.

Probably not.

Bramshott · 21/04/2008 13:53

Shall I write to my MP then? Shall I? Shall I? Not that it will do any good, but I am feeling argumentative today!

Bramshott · 21/04/2008 13:54

Expat - or they don't care, which is looking increasingly likely .

expatinscotland · 21/04/2008 13:54

Yeah, write him. Tell him you're unsure of how you will vote when next he comes up for election, and you would like some 'clarification' of his approach to this.

My2Weegirls · 21/04/2008 13:57

if i was paying attention i think the bbc this morning they said it would make the average person £25 worse off a year.

Iota · 21/04/2008 14:02

have just been looking at the pension credit thing - a single pensioner is expected to live on £124 per week - that's about £6K a year - a total pittance on which to run a home and feed and clothe yourself.

janinlondon · 21/04/2008 14:02

In a nutshell: If you are earning above £15,075 you will pay less tax. If you earn between £5,435 and £15,075 you will pay more tax.

expatinscotland · 21/04/2008 14:03

Especially considering fuel bills these days.

Iota · 21/04/2008 14:05

Quite Expat - hence my mother turning her heating off and wearing loads of layers incl thermal vests

expatinscotland · 21/04/2008 14:06

if you are earning over £15, XXX you'll be paying less tax if you're a family.

if you're single, that may not be the case.

Bramshott · 21/04/2008 15:26

Actually I think no point writing to my MP as (a) he is Tory and will just blame the govt, and (b) he is standing down at the next election.

I want to write a ranty letter to someone though - anyone got any suggestions?!? I don't even know which department - Treasury? Work and Pensions? Or shall I just go for Beverley Hughes, Minister for Families?

Bramshott · 21/04/2008 15:27

Oh no, it's Mr Ed "I go on the swings I am so cool and approachable" Balls now isn't it?!