The Budget

I'm over 50 too. So at 3% that's an extra £45 interest and a tax break worth a whole extra £9 per annum. As soon as I finish my ice-cream I'll turn somersaullts. Pity that the fall interest rates is costing my wife and me about £80 per week.

Toom

I'm over 50 too. So at 3% that's an extra £45 interest and a tax break worth a whole extra £9 per annum. As soon as I finish my ice-cream I'll turn somersaullts. Pity that the fall interest rates is costing my wife and me about £80 per week.

Toom

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Well, Toom, like the Governmint, you are guilty of short termism! Your £45 interest will increase next year when interest rates go up, and all of that extra cash which you have squirreled away will pay dividends later. Of course if you really believe that things are pathetic at the moment, you could do worse than put it into your now increased S & S ISA. That is likely to go up big time once the economy gets off its collective knees!

But only from October. Can't see why he bothered with the "over 50" bit since it applies to everyone 6 months later. That's 4.50 difference for a whole lot of extra admin for the banks and building societies.

What a pity they have a lot of nonsense costly *vote catching* policies (like scrapping Uni fees) that are un-funded

tim

It's called gesture politics - making New Labour look good, but with little of much substance for you and me. Seen it before with the 2% VAT cut (balanced twice over by the extra tax on fuel).

In message , Bioboffin writes

He appears to me to be the only politician who is talking honest common sense, but of course without any power he hasn't had chance to be corrupted.

Best sleight of hand is the 100k 'bracket'. From 100k to approx. 113k there will be a nominal tax rate of 60% (As 40% applies plus for every 2 there's a 1 loss of allowance, thus moving half from 0% to 40%)... Once the allowance is exhausted the rate returns to 40% until 150k is hit...

Hmmmm.

Justin.

Bitstring , from the wonderful person Justin Cole said

Yep, you can tell this has been carefully thought through. Not. Of course they've had years to study the same effect on age allowance, or pension credits, or whatever, and still haven't figured out how to smooth the curve.

Why the wasters didn't just bring in a 50% rate lower down (£120k or whatever) mystifies me. We now have another 'sorry we can't figure out your tax code for PAYE until we know what your income is going to be' fiasco (I'm assuming the £100k is total income, i.e. interest or dividend income, can trigger loss of tax allowances?).

Yup, overly complicated... However, it's automatic tax return for earning over 100k.

Yes, the 100k will consider all taxable income... I'm not sure yet how it will interface with higher rate pension contribution relief - My assumption is that the allowance will reduce based on the taxable income alone and the

Justin.

Sad but true.

:-)

John

snipped-for-privacy@from.is.invalid...

No need to make assumptions - you can read all about it here:-

Yes, just read the definition of "Adjusted net income".

Basically, all taxable earnings less gross pension conts.

Justin.

IR have solved that problem with my age allowance. This year, for the first time, they assumed I will lose it all. Then advised me if this is incorrect to discusss the actual figure with them, at the end of the year of course. Hmm and with sod all interest this coming year they have my cash until I claim it back. Real stealthy!

its like an MOT..........tomorrow forgotten.

The trouble is that he'll be 60 or perhaps even 70 by then.

FoFP

Bitstring , from the wonderful person brightside S9 said

I've complained about this before - the default position is 'you're earning a fortune, your age allowance is reduced back to standard personal allowance', regardless of what you may have told them the year before (if you are turning in tax returns anyway).

Goodness knows how many confused old dears are losing out as a result.

In message , GSV Three Minds in a Can writes

I know many people who would be glad to have that problem...

Don't really care. But I don't understand why he didn't add more to off sales[1] and keep the on sales rate the same.

I know there's concern about binge drinking in pubs but there's also concern about overly cheap alcohol from supermarkets. Putting the duty on off sales could be presented as attacking the second issue. At least in theory, consumption on a licenced premises should be monitorable and controlled.

Although it's really not going to raise very much. Eventually someone is going to have to raise tax rates for normal people.

I'm surprised he didn't expand the 1% NI band. He could have avoided changing the "headline" top rate tax completely by making earnings over

Tim.

A couple of billion, still it means he only needs to borrow 175 billion this year instead of 177 billion.

Yes, but not them.

He *wanted* to change the "headline" rate, so it's that which made the "headlines" rather than the eye watering borrowing figures. Things are so bad for this goverment that they deliberately broke an election promise hoping that that becomes the talking point of the budget rather than the mess they've made of the economy.