Budget Oct 24 Thread

I wouldn’t be surprised if the average for full time males in their prime earning years of 35-50 is now upwards of £50k.

I wouldn’t be that surprised either but I am a teacher with almost 20 years experience and don’t earn that.

funny how businesses never pass tax cuts on to their employees but immediately make them pay for any tax rises isn’t it?!

I’ve never known of any tax cuts that have benefitted a small business like ours.

Employees will have to be ready to move for more money.

It has, generally, always been that though hasn’t it. We pay what we can afford to pay (and we pay very well) but we usually lose employees who go on to work for much bigger organisations who can afford to pay (sometimes significantly) more money.

She needs to get on with it, we all know what the last government did. Just tell us what you’re going to do next.

Might not be, I can see my other half drawing her private pension before the state pension kicks in. It will be under the personal tax allowance.

I agree, but I can’t see tax rises being aimed at those currently or in the future paying none or 20% (except by a bit of fiscal drag as the state pension continues to rise up quicker than wage growth).  The only way to make your pension tax efficient is to make sure your contributions only fall into a higher bracket than you expect to draw it on.  I ‘sacrifice’ mine from the higher rate, and anything else I want to save I put in an ISA. Means I’ve paid NI on it but at least I can access it if needed which seems a reasonable trade off.

In that sense, if they did something drastic like remove anything over the 20% relief there’d be little point in anyone earning in the 40% bracket or above paying into a pension, it’d just be 20% tax now and 20% later. May as well pay the NI and have access to it whenever you need it.

@johndoh funny how businesses never pass tax cuts on to their employees but immediately make them pay for any tax rises isn’t it?!

+1

Employers will generally be forced into paying the market rate for staff. This might suppress that market rate by a bit but on the whole savy employers know that if they piss off employees by not offering a pay rise then they’re just giving employees a push into finding out what that market rate actually is (and it’s almost always going to be more with a new employer than what they’re currently on).

She needs to get on with it, we all know what the last government did.

I think it’s helpful to set the tone. Look, we didn’t want to do this but the Tories have royally **** up everything and we’re now trying to fix it…

@the-muffin-man true, my point was just that not everyone who earns above the higher rate tax threshold is well off enough to be able to afford more tax rises

I think it’s helpful to set the tone.

15 minutes so far of repeating the same lines though?

> The only way to make your pension tax efficient is to make sure your contributions only fall into a higher bracket than you expect to draw it on

The tax-free lump sum provides some benefit (6.25%) if you are in the same tax band in and out (and don’t hit the lump sum allowance limit).  Assumes no rules change between now and when you get access to your pension/want to take TFLS/drawdown…

11.8bn for the blood scandal. That seems a lot – 30k people impacted, meaning £390k / person – max pay out seems to currently be 120k. Probably some detailed missing.

I would happily pay a bit more tax if it meant things were working again & we got to live in a fairer society.

15 minutes so far of repeating the same lines though?

Some of that is a pretty damning indictment though, especially covering the multiple scandals that the Conservatives mismanaged.

Plus she got in a couple of good jibes against Truss and Kwarteng.

I think you mean Congestion Charge, not ULEZ. Even riding a bike emits more CO2 than driving an EV ?

EVs still cause a load of CO2 to be emitted in the UK.  But my understanding is that ULEZ is supposed to tackle local air pollution rather than greenhouse gas production.

Ewan
It’d be nice if we can discuss it here without descending into a slanging match

Oh you sweet, sweet Summer Child!

Sunak is enthralled (with his phone)…must be going for a new score on Candy Crush!

15 minutes so far of repeating the same lines though?

The thing is that the OBR stuff just published shows that what they’ve been saying is all true. The Tories basically left a massive timebomb ticking away at the heart of the states finances as they carried out their parting slash and burn economics.

I know people are saying they’re sick of hearing it, but the mindset that feels fine with a piece of economic vandalism like that needs calling out

DickBarton
Full Member
Sunak is enthralled (with his phone)…must be going for a new score on Candy Crush!

Oh, chuckle, very good! Very good! !-)

Lol, the Tory front bench look glum as f***!

Sunak is enthralled (with his phone)…must be going for a new score on Candy Crush!

Booking flights to California?

Lol, the Tory front bench look glum as f***!

How would you be feeling about the prospect of Kemi Badanoch or Robert Jenrick as your new boss?

Blimey no fuel duty increase -was not expecting that!

Fuel duty not going up.

So…

Tomorrows Daily Mail headline:

Labour condemn us to climate change hell!

😀

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

The threshold for the employer contribution is being lowered

[Sui]

Sui

Free Member

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

err, did she just take that back with another annoucement – well confused.

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

Massive facepalm on the fuel duty freeze. Again. FFS.

At the same time as announcing a 50% hike in the bus ticket cap. That’s just an epic fail.

Yeah – national insurance will be a big hit for my small postoffice.

Forget that – I’ll have to start climbing employment allowance… Our national insurance bill has been so low I’ve never bothered in the past…

Huh?

How do you work that out?

Also curious about this. I see no way that an increase in employers NI contributions will result in employees being better off.

It is kinda weird, but bear with me…

I pay a chunk extra into my pension each month. Since my employer doesn’t need to pay NI on that money they kindly add that 13.8% onto my pension contribution.  Assuming my employer sticks with their generosity, if the rate goes up by 3% then that’s about £800 extra over the year.that goes in my pension pot ( Plus a bit more if I get a bonus.)

Arable farmers to be hit by IHT as their farms wil be worth more than £1mn. Fiscal drag on all other IHT. Only 6% of estates now, but I bet that goes up to almost 10% by 2030, especially as pension pots will now be subject to IHT.

Farmers around here (Cotswolds) are up in arms about it, but most are estate owned or tennant so I don’t have too much sympathy when they complain.

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

I can see that resulting in an increase in cash-in-hand work being offered by cafes, pubs and the like.

Blimey no fuel duty increase -was not expecting that!

My thirsty Porsche stays!

Booking flights to California?

Wonder if he got it booked before Reeves announced the increase in Air Passenger Duty on private jets would increase by 50%…?!

She actually referenced California too, a dig at Sunak. 🙂

ooh low earners, business owners just got hammered -reduced threshold for payment from 9K down to 5K.

if your national insurance bill is less than the new 100k employment allowance cap you can claim back the national insurance contributions?

Farmers around here (Cotswolds) are up in arms about it, but most are estate owned or tennant so I don’t have too much sympathy when they complain.

Dyson has been buying all the farms near here to avoid IHT. **** that guy.

Farmers around here (Cotswolds) are up in arms about it, but most are estate owned or tennant so I don’t have too much sympathy when they complain.

Dyson has been buying all the farms near here to avoid IHT. **** that guy.

Wonder if he got it booked before Reeves announced the increase in Air Passenger Duty on private jets would increase by 50%…?!

That’s why he was so busy looking at this phone – trying to get in before the cutoff!

Fiscal drag on your income tax for another three years. Blaming the previous government for not making a change of course. The proportion paying 40% income tax will continue to rise. https://ifs.org.uk/publications/deepening-freeze-more-adults-ever-are-paying-higher-rate-tax

The thing is that the OBR stuff just published shows that what they’ve been saying is all true. The Tories basically left a massive timebomb ticking away at the heart of the states finances as they carried out their parting slash and burn economics.

Not really. It’s just labour playing silly politics with the reality of government spending.

All that happened is spending commitments based on current revenues would have needed more money than the Tories allowed for. So what?

More money is not a problem when the BoE pays for the spending.

It’s a normal deficit – which we’ve had for 44 out of 50 years. Your government is calling a regular deficit a black-hole.

Otherwise no money would find itself into the economy.

Government’s run countries like ours by putting more in than they take out.

Everything is else is nonsense.

farmers to be hit by IHT

I think you have mixed up landowners with farmers

Hence she’s just about to magically create the ability to spend more by adjusting a the definition of net financial debt.

In other words create a space on paper for spending more money.

We really are being taken for mugs.

(The fiscal rules are not really rules when you make a claim on what might happen in 5 years.)

More money being spent is a good thing though. That’s where the real change will happen.

That said you can’t have growth and keep these fiscal rules at the same time. They’re effectively opposites as growth needs way more spending than is being committed.

But the fiscal rules will almost certainly just become less rigid.

“HS2 what a F*** up”

Anyone else lip read that? Lol

Seems something of a nothing burger to me. Already assumed the thresholds would be locked – they are. CGT going up seems fair enough. Surprised fuel duty not going up. Nothing on salary sacrifice but maybe that’s in the detailed document.