All-round Budget thread

[longfingernails]

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[meditrina]

page about the tax credit changes.

[JemimaMop]

That links to an error page meditrina

[Chil1234]

Tax Credit Changes Applicable from April 2011 It's all there. And, in just a few weeks' time, we'll be able to check likely awards via the HMRC Tax Credit Calculator which should be updated for the start of the new tax year.

[MrsOtter]

Link doesn't go anywhere meditrina - It won't answer my question on how much I will receive anyway in 2012, I can't find that info anywhere

[pamelat]

Slightly off topic but to answer the earlier posts on here, my childcare is £12,000 a year for 2 children part time so £22,000 sounds pretty average to me, and we only live in the Midlands.

[meditrina]

adamschic: think The second part of your post summed it up rather well!

They got the "nasty budget" in early last year, and are now moving on. Whether the economy moves on as they hope has yet to be seen.

Some of the figures remain dire - inflation forecasts 4-5%, but growth forecast 2.9% (do those two interact), and still whopping great borrowing and a whopping great debt.

[meditrina]

That's the second of my posts that's gone wrong today - hope Chil's link works instead.

it'll work this time, it looks OK as I post.

[grovel]

Ed Miliband was frankly awful. We need constructive opposition in a financial crisis - not blanket negativity.

[MrsOtter]

Well I read the link but it didn't tell me how much we will lose

[meditrina]

No it still doesn't. Better stick to Chil's. Or search for the info you want on direct.gov.

[MrsOtter]

I have searched. There are no answers. Hence the need for clarification.

Will probably have to wait for the HMRC calculator though - Thanks George

[adamschic]

I heard that inflation is already running between 4 and 5%. Most employees won't be getting a pay rise this year, we have been lucky to get 2% starting next month. The figure don't look good but it remains to be seen.

[Hammy02]

Its a shame they haven't made the tax threshold higher. I would love to see a threshold of about £15,000. Then scrap all of the tax credits which seemed a bonkers idea in the first place.

[happiestblonde]

Hang on, I know i'm a massive tory but you are genuinely suggesting that the last government was good for the economy!?!?!

[Chil1234]

@MrsOtter... if you earn £30k gross you will continue to receive the minimum 'family element' of tax credits. The cut-off for 2011 is £40k as stated in the article.

The family element, currently guaranteed at £545 if annual income is £50,000 or less, will start to reduce by 41p for every £1 when income reaches £40,000.

The following year the cut-off will be £30k. Does that answer your question?

[MrsOtter]

We earn £37k gross roughly Chil. I don't understand what 'tapering' and 'cut off' means.

I know this year (2011) tax credits will remain the same for us but I just want a figure for next year (2012) and can't seem to find the info. to give me one

[BeenBeta]

adamschic - inflation at 4 - 5% almost certianly means the Bank of England will have to raise the Bank Rate in April/May and keep on raising it throughout the year.

That will undo any small give away in the budget for many families who have a floating rate mortagage.

[Chil1234]

Not necessarily... the inflation pressures are largely coming from external sources e.g. oil and other commodity prices, rather than excessive spending on credit as was the case in the past. Raising interest rates won't affect the oil-price, for example. And even if someone has a variable rate mortgage, they were capped at somewhere above the base rate when rates were dropping.

[ThePippy]

Also adding to the info on childcare - I pay annually just shy of £14,000 for one child to attend full time at a day nursery. Before tax this means I need to earn around £19,000 just to cover these costs.

This is for a standard nursery in one of the most expensive parts of the country (where I am also hit with some of the highest house prices and travel costs in the country) so while I earn what many would see as a good salary, like everyone I have still been hit hard by recent events (fuel rises, no pay rises, tax increases, food costs rising, increased lending rates on mortgages), and will be hit further when I loose child benefit as a result of being "well off".

Taxes are not dependent on location or affordability, so I have to say that while I am a higher rate tax payer I am significantly worse off than many of my family who live in one of the cheapest parts of the country and who are not higher rate tax payers.

How wealthy you feel will more than likely depend on your disposable income rather than the figure your company pay you, so while I understand why someone on £10,000 a year thinks a higher rate tax payer is extremely well off, I know this to be untrue and would never judge anothers wealth soley on what they earn.

I think no matter what is announced in the budget, life for everyone is going to continue to be tough for a few more years, which is frankly bloody depressing.

[Chil1234]

@ThePippy, the income tax system doesn't run on disposable income... just gross income. If your gross pay is high enough to ping the higher-rate tax threshold bell then you're obliged to contribute just the same as someone on the same salary living in a cheaper area with few outgoings. We all have to cut our cloth and make our choices how to spend the cash.... we can't expect HMRC or the Chancellor to dash over with the tea and sympathy because we've opted for a lifestyle we can't really afford.

[Strix]

"Growth was picking up under the Labour government"

[ineedagoodsolicitor]

growth was picking up under the labour government

Do you know what else was increasing under Labour ?

Goverment spending and the national debt ! Leaving us with bigger and bigger payments to make and a black hole in the goverment funding situation !

[ineedagoodsolicitor]

Apologies for the missing n's in government !