View Full Version : The Budget
nicky munchkin
21-03-2007, 20:02
http://news.bbc.co.uk/1/hi/uk_politics/6472999.stm
What do you all think?
The great thing about the budget is that one has no choice in complying with it.
I will still need petrol to get places whether it goes up or down in price. I will still drink beer too. I'll probably still smoke when stressed, and I'll still only see the net amount of my wage packet regardless of the income tax.
I'm somewhat passive about it :)
Not best pleased about the dissapearance of the 10% tax bracket, but the increased personal allowances should make up for that. Overall it's the usual tax/benefits swings and roundabouts...the nibble a bit here, give back a bit there. All that changes is which bit(s) they nibble at.
Whats the 10p tax rate?
I love how news sites assume everyone knows everything about everything.
10p in the pound. It's not bloody rocket science.
Hardly a useful response !
Whats the 10p tax rate?
I love how news sites assume everyone knows everything about everything.
The 10p tax rate was only applied to the first 2 grand (roughly) you earn after your personal tax free allowance (for most this is roughly 5 grand). After that you were taxed at 22p per pound.
So in the previously you would get 5 grand without tax, the next 2 grand you would pay 10p per pound earned and everything after that (upto roughly 40 grand) would be taxed at 22p per pound earned.
In the new system, you get your 5 grand without tax, then you get taxed at 20p per pound until you hit 40 grand earned. Then it goes up !
Hopefully that explains a it a little. There's plenty of information out there if you want exact figures !
so we're worse off then ?? ie paying more tax ?
nicky munchkin
21-03-2007, 22:26
Well income tax is coming down amongst others from 22p to 20p and a lot of stuff is frozen. For example a lot of stuff like tax on nicotine gum and the like is has come from 17.5% to 5%. Its really a case of taking from one area and putting in another. Its gone up a bit due to inflation but it was certainly a good budget.
The most heavily affected are those who drive 4 x 4's in which road tax is now £300 and due to rise to £400 next year. <-- I aint complaining.
Hardly a useful response !
He's 24, not 10. If he's doesn't know what the 10% bracket is then he probably doesn't care, or he was being sarcastic. In either case there's no particular need for a useful response.
Chenks - yes but it depends on your income. Let's assume you earn around £7000, ie your £5000 personal allowance plus the £2000(ish) that falls under the 10% band. Before you would have paid £200 tax on the £2000. Now you'll pay 20% tax on that £2000, but your allowance has gone up to £5225. So you'll pay £360 instead of £200, basically.
But if you're on a low income, it means you can earn £190 more without paying tax. And if you're on a high income then overall the removal of 10% and replacement of the 22% rate with 20% shouldn't make much difference either way (no doubt it will cost more, but probably not much).
shifty.ricky
21-03-2007, 22:58
Its gone up a bit due to inflation but it was certainly a good budget.
Depends what you spend your money on.
People who run there own company (like me) are facing the loss of the 10% tax bracket and increase in corp tax to 20% from 19% more in the future.
Old
Personal tax allowance - the first £5,225
10% tax band - the next £2,150
22% tax band - the next £31,150
40% tax band thereafter.
From April 2008
Personal tax allowance the first £5,225 (plus next year's modest increase)
20% tax - the next £33,000 approx.
40% thereafter.
If you earn £17,000 per year, your tax this year will be £2,332
Next year on £17k your tax will be £2,355
It's a tax rise NOT a tax cut.
It isn't until you earn about £20,000 that it becomes no change and thereafter it's a tax cut.
shifty.ricky
22-03-2007, 00:05
Can I get a nurgh...
Personal tax allowance is: £5035/year (nothing)
Next £2150 @ 10% etc.
From the horses mouth: http://www.hmrc.gov.uk/rates/it.htm
Can I get a nurgh...
Personal tax allowance is: £5035/year (nothing)
Next £2150 @ 10% etc.
From the horses mouth: http://www.hmrc.gov.uk/rates/it.htm
I don't think that's been fully updated, since the budget -- only the pre-budget report (as TFA states).
The Chancellor announces the taxable bands and the rates of tax at the Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Budget takes place in March.
Sounds very future tense to me.
As for the lack of a 10p bracket. I'm ****ed off. My earnings will be tight enough next year, let alone with an extra 10% slapped on that £2k.
liadbacklad
22-03-2007, 11:55
I'm glad they are finally giving an incentive to change your ways with regards to cars and how 'green' they are. that was one of my biggest gripes before...
Incidentally I wasn't being sarcastic, I have no idea how the finer details of tax work, I know I pay tax, but have never had any interest to go into finer details, however the removal of some 10p tax rate did sound intriguing.
Thanks for the helpful response, Sharkey. People that don't know about tax obviously don't deserve the right to know anything about it, they are so stupid they should know about these things, what muppets eh.
Wow, I thought I found a nice forum as well!
I'm glad they are finally giving an incentive to change your ways with regards to cars and how 'green' they are. that was one of my biggest gripes before...
If I could afford to spend £50,000 on a large engined range rover or other such, i really don't think i would give a crap about paying £400/year on tax. Hell, that would only be a months fuel anyway...!
Cable Monkey
23-03-2007, 13:36
The great thing about the budget is that one has no choice in complying with it.
I will still need petrol to get places whether it goes up or down in price. I will still drink beer too. I'll probably still smoke when stressed, and I'll still only see the net amount of my wage packet regardless of the income tax.
I'm somewhat passive about it :)
Thats the beauty of having the masses on pay as you earn. The top 5% though make themselves limited companies or bank/live in tax havens (despite being here most of the time) and hire expensive accountants to reduce their overall tax burden to less than 10% despite their massive earnings. But then you don't get rich by handing 40% of your earnings to the chancellor every month!;)
If I could afford to spend £50,000 on a large engined range rover or other such, i really don't think i would give a crap about paying £400/year on tax. Hell, that would only be a months fuel anyway...!
Two things...
Firstly, that's not really the point. It's about raising tax money to offset the problems caused by petrol chompers. If you use a 4x4 it's bad so you pay more to offset that. Actually, let's face it...it's just about raising tax money lol.
Second, maybe not, but how many of the big 4x4s on the road are actually £50,000 Range Rovers? A lot of people use old Discos, Land Cruisers and the like. And aside from the odd farmer, all of them could survive just as well with an estate or an MPV.
PS - When I say 4x4, I mean the big monsters. I don't mean things like the Fiat Panda 4x4 lol.
The budget was a joke. Period.
Cable Monkey
23-03-2007, 16:05
The budget was a joke. Period.
Expand.....
nicky munchkin
23-03-2007, 18:18
If you live in a city or town and own a 4x4 and live on your own then your an as*hole IMO.
You all seem to be missing something with regard to gas guzzlers. Petrol is in finite supply and gas guzzlers only speed up the depletion but the excuses for taxing them are just that - excuses. There have been many periods of global warming even in earth's recent geological (and historical) past but carbon dioxide wasn't the reason for them then and since the normal level of carbon dioxide in the atmosphere is 0.54% and man's contribution is a fraction of that, it isn't likely to be the reason now.
Certainly it is not helping the situation but there have been periods in recorded history where the average temperature was more than it is today and there were no catastrophes. Indeed, in the middle ages there was a sustained period of higher temperatures for about 250 years where vineyards were common in southern England and even some further north. It was also the boom time in building of cathedrals and they only were built in times of comparative wealth.
Variations in temperature have always been with us and the chances are high that man's best efforts have contributed only modestly. One curious item with this global warming is that the main Antarctic ice cap is growing thicker which is contrary to what you'd expect. And there have been times when the Arctic ice disappeared completely - yet polar bears are still with us!
Question what you hear - from both sides.
If you live in a city or town and own a 4x4 and live on your own then your an as*hole IMO.
And taking the kids to school in a Range Rover because it's safer, is pretty hypocritical.
What about all the sensible people with normal family cars, who have to worry about some ditsy mother plowing into them at 35MPH? I don't care what you drive; a Range Rover vs. anything, equals a great, big MESS.
You've got the blame the car manufacturers though; Range Rover Sport? Who on Earth had that idea? :rolleyes:
shifty.ricky
26-03-2007, 01:23
And there have been times when the Arctic ice disappeared completely - yet polar bears are still with us!.
I knew it! Its them and those damn penguins...they are behind it.
ActuallY I'd prefer a car that didnt produce any toxins...hydrogen fuel. Why, well I dont want to breathe the output from diesel car. Who cares if it warms the planet its still toxic as ****.
I am designing a 4 wheel drive that runs on captured environmentalists!
brumster
26-03-2007, 11:41
Let's get one thing straight, though, it's additional road tax for the most poluting cars, not 4x4's. There are plenty of cars that'll fall into this category that are not 4x4's - high performance cars and the like. I think this is completely fair. However I think it will be ineffective in driving people out of cars like this - an extra £180 per year road tax won't make much difference to most of the typical owners.
But please, let's get out of the idea of taxing solely 4x4 owners. I kind of find it semi-offensive, being the owner of a (responsible) 4x4 myself. It's like being victimised unfairly for your choice of vehicle (and yes, I live semi-rurally, I need it for towing the rally car, for assisting on rallies, fitting all the family and dog in plus the added bonus of offering some decent protection to the missus and kid!). It's not in the worst CO2 category and it's more friendly than many sports cars smaller than it, so give me a break ;)
Too many people here subscribe to tabloid thinking. It's not just 4x4 that get hit with the new higher tax band, there are a lot of other cars that get hit by it as well. 4x4 are not the worst polluters by a large margin.
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