Hi,
I made a tool to see if you are better or worse with the new budget and income tax and NI:
David
So, according to this, workers on an average wage of 24 000:
take home pay in 2007/2008 = 1500 (322 tax & 178 national insurance) take home pay in 2008/2009 = 1527 (294 tax & 178 national insurance)
take home pay in 2009/2010 = 1422 (400 tax & 178 national insurance)
But no doubt the papers will be singing his praises tomorrow despite the bottom line being that the average earner will be 78 worse off a month because of the new changes.
Yes, it looks that way (assuming my system is right!). If people only look at next year they will be happy but the year after it is not so good. If you earn very little it looks even worse so the normal problem of people taking part time work for child care could be even worse off
£29K is average, 24K is median.
Eh? That looks wrong to me - why does tax go up in 2009/2010?
The 10% band is abolished in 2008/9, at the same time as basic rate is reduced to
20%, which should make anyone earning 24k (or above) pay *less* tax than now from 2008/9 onwards.NI will rise significantly for those earning above the NI ceiling (about 33k), but this won't affect anyone on less than that.
There are many ways of computing an "average". Median is one of them. Your "average" of 29K must be another one, and is meaningless unless specified further.
The 10% is removed in the year afterwards
No it isn't. Read the budget report:
Your figures are still wrong, even if the 10% was removed the year after.
This one's more comprehensive -
...but doesn't give the full picture with the figures for the year after...
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