Forum menu
Can someone explain exactly WHY top rate taxpayers (me included) need an extra £43/mo
Because lots of people on marginal rates just above the cutoff have diverted money into their pensions so that they don't have to pay higher rate tax on it, as they were widely advised to do:
the government would rather have them keeping that money out of their pensions and in income tax (at 20%) and spending it in the economy now rather than put aside untaxed into pensions in the future.
People are more likely to just use the money as income when its in the lower rate tax bracket.
re poster, puh-leez..
As above, we need to think longer term as a society.
RE ninfan - sounds logical - is it a cover-up/hoax? should I be really angry?
AFAIK the budget was designed partly to help small businesses grow.
There were tax cuts for small businesses yes.
The kinds of businesses who will give employment to the unemployed and needy.
The disabled who can't wash themselves or use the toilet without help generally don't do very well in the employment stakes, hence tend to be dependent on benefits. Those who do get jobs tend to be at the lowest end of the wage spectrum ie below living costs and need extra help to make end meet (being disabled adds a lot of cost to day to day living).
The disabled who can't wash themselves or use the toilet
So we are in agreement, it's the most physically disabled that have seen the cuts - not the less?
Or is it actually vice-versa, based on a score-rating?
Because lots of people on marginal rates just above the cutoff have diverted money into their pensions so that they don't have to pay higher rate tax on it, as they were widely advised to do:
An extra £43/month won't make any difference to that. The main reason pension savings has skyrocked recently is fear that higher rate relief will be axed (as recommended in a recent treasury report). It was only ruled out last week from this budget so as not to cause any major upset prior to the Brexit election. It may well still be cut. I've been saving at the maximum rate into my pension the last 2 years and will do so next year, just in case it is cut.
If any high rate taxpayers truly agree with the OP, they'll be paying their £43/mo to a charity next year.
Sorry our family wont be. Our family has seen year after year of tax increases, and we are one of these apparently wealthy middle class families.
Of course all of you non 40% pay earners who will be benefiting from a higher basic threshold of £11k will be passing that on to charity too right? 
That poster falls right into the Tory hands essentially it says 'public sector wants ever more of your money'. And it make it look like the Labour have given up on the private sector, which is odd really as back in time the working man in a factory, workshop, ship yard etc. was their core support.
is it a cover-up/hoax?
nudge behaviour to put people off using a tax loophole and increase total tax receipts?
should I be really angry?
If you think that [b]tax avoidance[/b] is a bad thing, and that the [b]ten percent[/b] (for it is they) should not be putting money into pensions just to avoid paying income tax, then probably not
Super ISA and the proposed savings scheme for low earners seem like good changes for all to me
[url= http://www.thedailymash.co.uk/news/society/low-paid-workers-to-get-speedboat-tax-relief-20160315107141 ]A Summary of the savings scheme for low earners, for the more terminally middle class[/url]
😉
[quote=ninfan spake unto the masses, saying]Can someone explain exactly WHY top rate taxpayers (me included) need an extra £43/mo
Because lots of people on marginal rates just above the cutoff have diverted money into their pensions so that they don't have to pay higher rate tax on it, as they were widely advised to do:
> http://www.thisismoney.co.uk/money/news/article-2119279/Tricks-avoid-slipping-40-higher-rate-tax-bracket--50k-child-benefit-trap.html
the government would rather have them keeping that money out of their pensions and in income tax (at 20%) and spending it in the economy now rather than put aside untaxed into pensions in the future.
People are more likely to just use the money as income when its in the lower rate tax bracket.
Surely you'll get the same thing happening, but at a different threshold?
Crony capitalism is ruining the world. Not sure what the answer is really. Nasty, selfish, uneducated people seem to be the norm in all sectors of society now.
If any high rate taxpayers truly agree with the OP, they'll be paying their £43/mo to a charity next year.
I'd love to but Nicola has other plans it seems.......
[url= http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35830150 ]http://www.bbc.co.uk/news/uk-scotland-scotland-politics-35830150[/url]
It's not a truly sad day; a truly sad day is when somebody dies or there's a huge disaster.
As it happens I'm currently in the middle of receiving first-hand experience of the NHS and Social Services provided by this self-serving evil capitalist scum Tory government that some forum members are so fond of criticising in their determination to prove their right-on credentials.
We have my elderly MIL staying while she receives chemotherapy. She is generally quite unwell even without the cancer. When she first arrived at our house we (as fit and well people) were completely ignorant of what was available ABSOLUTELY FREE OF CHARGE from the NHS and Social Services. Admittedly it has taken a lot of effort and learning and we have been helped by the wonderful district nurses who have explained a lot and helped us make the right contacts. Caring for her is almost a full-time job for Mrs Gti, what with all the phone calls and trips to hospital, doctor visits, carers, form-filling etc. but my wife is resourceful, determined and articulate so we have been able to get help with everything including all the nursing and care and incontinence products and now almost all the cost of the care home where my MIL will go once the chemo is finished. Suffice to say we are massively impressed by the care that we've received and the dedication of the social and medical professionals we've encountered. AFAIK my MIL is also contented with her state pension and other services she's received during her life.
I can see how a less able person with less determination could easily fall out of the system or fail to get all the help they need. That's a shame and it's made more shameful by the tiny section of society who are extremely well-informed about their rights and manage to live their lives quite comfortably by exploiting the system to the full. I could cite another relative who fits this description perfectly.
So to anybody who bleats about the injustice of the UK's system I would say: get off your backside and go and live in, for example, India or Nigeria where a huge percentage of the world's population lives, see how thay are forced to manage than come back here and tell me you live in an unjust society.
Oh and by the way I also have to confess that my BIL is a hospital GM at the other end of the country and the most decent, caring, conscientious, hard-working bloke you could ever want to meet. I see the stress he suffers in his efforts to deliver good care in the face of cuts and I see the respect he is accorded by his colleagues from the cleaners to the consultants. So yes, I've a strong opinion on this, which is why miserable, whining, entitled folk who do nothing but carp and criticise, get right up my nose.
Rant over. Carry on.
So to anybody who bleats about the injustice of the UK's system I would say: get off your backside and go and live in, for example, India or Nigeria where a huge percentage of the world's population lives, see how thay are forced to manage than come back here and tell me you live in an unjust society.
So your argument in favour of the Tories is that Britain is still not as bad as some places.
Nothing like setting your sights high, eh?
Just to expand - we know things are overall good, but we want them to STAY that way not be dismantled by Tories.
So by favouring small to medium enterprises, for example, the Tories are dismantling the welfare system, in your book?
Did it ever occur to you that it's better to give people the opportunity to work and gain self-respect rather than receive benefits all their lives?
So to anybody who bleats about the injustice of the UK's system I would say: get off your backside and go and live in, for example, India or Nigeria where a huge percentage of the world's population lives, see how thay are forced to manage than come back here and tell me you live in an unjust society.
Dropping to the lowest common denominator is just daft, although the Tories do seem very keen on the idea for anyone who is not a millionaire.
I don't think today is a "particularly" sad day. Just one of many. The problem I think is that no-one is prepared to be radical and our governments just regularly nibble at the edges.
Europe is our only protection from these self serving buffoons.
Did it ever occur to you that it's better to give people the opportunity to work and gain self-respect rather than receive benefits all their lives?
How does creating a society where the most disadvantaged can't afford to survive give them self respect?
What next, kick a homeless person to help motivate them?
The 'support for small businesses' comes mainly in the form of lower (or no) business rates. A previous change the government made was to allocate business rates to local authorities. So this 'support' takes money directly from the organisations respoinsible for social care. Nice one Gideon!
So to anybody who bleats about the injustice of the UK's system I would say: get off your backside and go and live in, for example, India or Nigeria where a huge percentage of the world's population lives, see how thay are forced to manage than come back here and tell me you live in an unjust society.
We have an NHS that decides what conditions it will and won't treat. Can someone please explain why I should continue paying my taxes when not only will the NHS not pay for my lifelong meds (for which I have an exemption card) but my (now ex) NHS Joint Head of Endocrinology consultant told me that he's not interested in my debilitating symptoms.
I have no other option but to pay for private consultations, blood tests and my lifelong meds that I buy online from outside the UK thus incurring a risk to my health.
In this so-called civilised society we have patients joining health forums seeking advice to manage their condition(s) as well as requesting contact details of our 'drug dealers'.
As a matter of routine ADs are routinely proferred, as are statins as are PPIs etc etc. Why should this be? Rolls eyes.
In the meantime it looks as though I've developed another health condition that I'll again need to self fund.
The NHS pi$$es money up the wall right, left and centre through bribery, corruption and mismanagement with the poor taxpayer expected to fund it all. Where's the justice in that?
As it happens I'm currently in the middle of receiving first-hand experience of the NHS and Social Services provided by this self-serving evil capitalist scum Tory government that some forum members are so fond of criticising in their determination to prove their right-on credentials.
Well, lucky - in a sense - that her health problems happen now (sorry that they happen at all, of course). In a few years Jeremy *unt and co will have concluded their plan to destroy the NHS so she would be stuck with a sizeable bill.
This is not about the NHS.
The Tories are taking benefits away from disabled people .
Benefits that help them live a better life whilst enduring hardships we can only imagine .
All so they can give more money to people they think will vote for them .
peteimpreza - the cuts are based on a sliding scale are they not?
My impression is that they are not cutting any benefits for those that genuinely struggle with basic needs (like those mentioned eariler), but those that are able to look after themselves pretty much in full capacity will recieve less.
Thus, I suppose, there may also be an intention is to root out fraudulant claimants.
Still, I would agree that it seems strange fo them to continue to strip welfare when in the face of the public it appears so damaging.
All so they can give more money to people they think will vote for them
As opposed to creating a vast sea of public pencil pushing jobs in the name of jobs for the people? Still at least we would then get tax money from the public sector jobs.. created with.. public money..
Wait a minute..
"Did it ever occur to you that it's better to give people the opportunity to work and gain self-respect rather than receive benefits all their lives? "
You are trolling ?
Do you have any idea how disabled some of these people are ?
FFS man have some compassion .
So by favouring small to medium enterprises, for example, the Tories are dismantling the welfare system, in your book
No, they are dismantling the welfare system by cutting disability benefit. Obvious, no?
Do you really think cutting taxes for higher rate payers will help the poorest? Do you think stimulating entrepreneurial activity will help the long term benefit claimants?
Rather naive, I think.
The single mum who's never worked, and the young man with no qualifications and mental health issues aren't waiting for some cool new startup job to come along and lure them from their daytime TV...
We have an NHS that decides what conditions it [s]will[/s] can afford and [s]won't[/s] can't afford to treat.
FTFY
I dont understand how, with the deficit still rising and the debt going through the roof the government thinks it has any money to give away to anyone in the form of tax cuts and breaks.
Until we at least get to a budget surplus rather than deficit then the government doesnt have a single penny to fund give aways to anyone.
We have an NHS that decides what conditions it will can afford and won't can't afford to treat.
FTFY
Er, nope.
It can afford to give me ADs, statins, PPIs etc etc. Because of course people in high places are having their greasy palms crossed with silver by Big Pharma.
the young man with no qualifications and mental health issues aren't waiting for some cool new startup job to come along and lure them from their daytime TV...
Not according to the news report I watched last night, as said young man coninued to thrive with his new funded mobile coffee cart. He was completely made up.
Granted, we only need so much coffee. But still, was good to see.
Pay more tax then. We'll be able to afford more spending on benefits.
You'll feel better pay 60% tax and watching the less advantaged being taken care off.
As per usual on STW there's views from one end of the spectrum to the other.
I'm quite pleased with this budget, as I'm fortunate to fit into that "middle" sector. The £43/month increase seems a bit of a myth though as the BBC reckoner tells me that whilst I gain on tax, I lose on NI so overall it's £13/month. All welcome though as I haven't received a pay rise for 3 years.
I have a different view to most in that I feel that we should all be treated the same tax wise in the percentage that we pay, not very popular I know, but I don't understand why anyone should have to pay a higher rate of tax if they are fortunate to earn more as they pay more in anyway.
I'm not familiar enough with the disability points to make a comment I'm afraid.
I dont understand how, with the deficit still rising and the debt going through the roof the government thinks it has any money to give away to anyone in the form of tax cuts and breaks.
It goes something like this:
[i]The recession-like state of our mostly service industry based economy is partly due to people not spending money like it's water.
Give people more money in their pocket and they'll spend more in businesses which pay more tax which boosts the economy etc etc. [/i]
Sadly, (as the situation in Japan evidenced) it doesn't always work like that.
Pay more tax then.
If we want a health service, care for the disabled, care for us when we are old, roads without potholes, decent public transport, shiny new submarines etc etc that is exactly what we will have to do. And it's about time the politicians were brave enough to say so.
So far it seems quite telling that most arguments are based on the disability cuts, but with seemingly little to back up exactly what is being cut.
Pay more tax then.
Perhaps the best compromise in the long term
I'm quite pleased with this budget, as I'm fortunate to fit into that "middle" sector.
So do I. I'm not pleased with the budget.
Personally I would prefer to pay more tax than for cuts to corporation tax and CGT to happen [i]at the same time[/i] as cuts to disability benefits.
The thing that I find staggering is that anyone other than the top 5% of earners votes for the inhumane, casually heartless, self-serving shower of shits!
^
from Binners.This. I just don't get the justification for most people to vote tory.
And it's about time the politicians were brave enough to say so.
One of them already has, quite an important one too.
[quote=chrismac said]I dont understand how, with the deficit still rising and the debt going through the roof the government thinks it has any money to give away to anyone in the form of tax cuts and breaks.
Linky to the "deficit still rising" stats ?
@SlimJim78 - It would look like from the points in this [url= http://www.bbc.co.uk/news/uk-politics-35830452 ]BBC article[/url] seem to suggest it is pretty open ended - each case is going to be different? There is further reading on [url= http://www.theguardian.com/society/2016/mar/15/disability-cuts-cutbacks-destroy-independent-living-budget ]The Guardian[/url] about actual effects on some cases. I'm confused as to how they say a billion quid more is being spent over the next 5 years, but individual payments are being cut (or may be cut?) and they are saving 1.3 billon quid a year doing this - why isn't the media properly explaining this?So far it seems quite telling that most arguments are based on the disability cuts, but with seemingly little to back up exactly what is being cut.
RM.
edit: @allthepies [url= https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance ]ONS Public Finances[/url]
Can someone explain exactly WHY top rate taxpayers (me included) need an extra £43/mo? At the expense of the disabled on benefits? FFS.
I need to do the calculations but the planned increases in the personal allowance are in effect a (relative) tax rise on those that pay the highest rate of tax (45+2) as they don't get a tax free personal allowance. Every penny from the first pound earnt is taxed.
@binners if I only cared about myself why would I remain living in a country like the UK with relatively high taxes ? I could live and work in for example US, Dubai, HK or Singapore.
I could live and work in for example US, Dubai, HK or Singapore.
Sorry Jammers old boy, but that sounds like a familiar bleat from the banking fraternity as they threatened to chuck their toys out of the pram after the crisis, in protest at the merest hint of anyone regulating their unfettered greed and psychopathic risk-taking, or asking them to actually pay some tax, stop bankrupting the country, scrounging off the state, or any other dreadfully unpalatable things.
We kept hearing how they could relocate to anywhere in the world, who'd of course welcome them with open arms of course
None of them did though, did they?
I wonder why? Is it because if you're a ludicrously overpaid sociopath then London is probably the best place on earth to get all your desires, no matter how grotesque, serviced by a simpering, craven government.
Personally, my opinion was probably similar to most when they were having their little hissy fit
Don't let the door hit your arse on the way out, will you? And do send us a postcard from wherever this apparent ****ing utopia you're off to is
Mintimperial, ransos, bonnets and molgrips +1
So will my son with severe learning difficulties be better off under the current government? No. Is it a disgrace? Yes.
None of them did though, did they?
I posted this before, I do appreciate you may have ignored it 😳
None I think is a bit strong ...
I moved to Singapore and personally knew around a dozen colleagues who did the same. Brevan Howard the hedge fund moved all their big earning traders to Geneva.
London is highly regulated, if you are the type of nutjob binners is describing there are far better places to ply your trade
Every health service in the world operates to a budget. Labour offered an extra £/bn pa for the NHS and the Tories £8bn at the GE. I know people here think thatbpromise is worthless but Labour should have been bolder.
As I said we are spending annually £130bn on nhs, £130bn on welfare, if thats not going to the right places we should look into that