Tax

[primemover70]

I see the last financial year did not increase the Persnal Allowance . . . As this was prepared BEFORE the pandemic restrictions, it makes me wonder what was really known . . . So, 2020 was spent (literally) with a Value For Money cut in real terms) . . . This F Year has raised P Allowance by £50.00 ! ? - another VFM cut . . . As I am fortunate enough to have a small occ pension, the greedy, grabbing, rich  Tory Ivory Tower so-called chancellor has graciously allowed me to keep mere pence of my so-called index-linked raise . . . What index ?  you may well ask . . . Never mind, he says, we'll just sock it to the poor old pensioners, who have paid down the years, as usual . . . 

[silverglade5]

We've had a bit of a problem with a virus recently, with unprecedented borrowings required just to keep businesses of all levels solvent and people in jobs. I believe we should be thankful for this lifeline, not contemptuous of its effects. Like all loans, this has to be paid back eventually, and to avoid saddling future generations it would have been irresponsible not to have at least made a start on the repayment process. There is far worse  to come in terms of taxes required to tackle our national debt mountain and, as the song goes, 'you ain't seen nothing yet'.

[HeHasRisen]

Is this going to be another hit and run thread by Primemover?

 

 

He still needs to return to this one to admit the OP was a load of oul bull

[El Cid]

5 hours ago, primemover70 said:

I see the last financial year did not increase the Persnal Allowance . . .

Even before COVID, I understand the Government carried a lot of debt. The personal allowanance does take a small bit of money from everyone, but it hits the poorest the hardest.

Its a tax that doesnt create a headline, except that more people are in poverty.

But do people still believe people suffer hardship?

[the_bloke]

3 hours ago, El Cid said:

Even before COVID, I understand the Government carried a lot of debt. The personal allowanance does take a small bit of money from everyone, but it hits the poorest the hardest.

Its a tax that doesnt create a headline, except that more people are in poverty.

But do people still believe people suffer hardship?

In what way does the personal allowance hit low earners any harder than middle to high earners? I pay over a grand of tax and NI every month. Do you think that hurts less than someone earning 13k a year who pays about 30 quid a month tax?

 

Update:

 

It's even less than that!

 

Earn £13,000 in 2021/2022 and you'll take home £12,504. This means £1,042 in your pocket a month.

Over the year you'll pay £84 income tax and £412 in National Insurance.

 

Source: https://www.moneysavingexpert.com/tax-calculator/

Edited May 21, 2021 by the_bloke

[AKAMD]

Proportionate to income, the lowest paid workers are hit the hardest in any financial crisis, in both direct and indirect taxes.  And, as ever, throughout last year, whilst people lost their jobs, were furloughed on 80% or lost their small business, the rich got richer!  In fact, according the Sunday Times Rich List, there were more billionaires (up 24) created than in any year since the List was launched 33 years ago!  There are now 171 UK based billionaires and all of the top ten in the List saw a growth in their wealth.  Proportionate to income, who will pay most to cover the national debt, post-pandemic?  Those with the least!

[apelike]

4 hours ago, El Cid said:

Even before COVID, I understand the Government carried a lot of debt. The personal allowanance does take a small bit of money from everyone, but it hits the poorest the hardest.

Its a tax that doesnt create a headline, except that more people are in poverty.

But do people still believe people suffer hardship?

The only people I see that actually suffer from hardship are the ones on the street. As for poverty, more people are in relative poverty which is basically meaningless when it comes to actual real poverty and being poor.

[apelike]

38 minutes ago, AKAMD said:

Proportionate to income, the lowest paid workers are hit the hardest in any financial crisis, in both direct and indirect taxes.  And, as ever, throughout last year, whilst people lost their jobs, were furloughed on 80% or lost their small business, the rich got richer!  In fact, according the Sunday Times Rich List, there were more billionaires (up 24) created than in any year since the List was launched 33 years ago!  There are now 171 UK based billionaires and all of the top ten in the List saw a growth in their wealth.  Proportionate to income, who will pay most to cover the national debt, post-pandemic?  Those with the least!

Unfortunately just like relative poverty values using a proportionate to income value is misleading as the rich still pay vastly more taxes than those with less income. However because the rich are rich they are also able to make more money in investments and interest that those on lower incomes. We could of course tax them more just like in the 60s but then see them jump ship to another place when the taxes are lower thus making the taxation income much less which will have a undesirable impact on everybody.

 

Such as life!

Edited May 21, 2021 by apelike

[Janus]

I would like to know, if the  government is intending to fully investigate those responsible for the fraudulent furlough claims. To reclaim from, and prosecute those that stole money from you and I. The figure below apparently includes paying out in error and fraud.

If the DWP overpay YOU by a couple of quid they want it back.

I don't know what the current figure is. However, a BBC news article from September that I just looked at mentions £3.5 billion!
https://www.bbc.co.uk/news/business-54066815.amp

[the_bloke]

1 hour ago, AKAMD said:

Proportionate to income, the lowest paid workers are hit the hardest in any financial crisis, in both direct and indirect taxes.  And, as ever, throughout last year, whilst people lost their jobs, were furloughed on 80% or lost their small business, the rich got richer!  In fact, according the Sunday Times Rich List, there were more billionaires (up 24) created than in any year since the List was launched 33 years ago!  There are now 171 UK based billionaires and all of the top ten in the List saw a growth in their wealth.  Proportionate to income, who will pay most to cover the national debt, post-pandemic?  Those with the least!

Facts:

 

Using this:

 

https://www.moneysavingexpert.com/tax-calculator/

 

Earn £13,000 in 2021/2022 and you'll take home £12,504. This means £1,042 in your pocket a month.

Over the year you'll pay £84 income tax and £412 in National Insurance.

 

Earn £50,000 in 2021/2022 and you'll take home £37,664. This means £3,139 in your pocket a month.

Over the year you'll pay £7,484 income tax and £4,852 in National Insurance.

 

If you earn £13k a year, your income tax is 0.3% of your earnings

If you earn £50k a year, your income tax is 14.9% of your earnings

 

Please explain how the earlier claim of `The personal allowance does take a small bit of money from everyone, but it hits the poorest the hardest.` is true.