Pre budget report tax hit

Discussion in 'OT (OFF Topic) Forums' started by Satch, Nov 25, 2008.

  1. Satch

    Satch Hardcore MB Enthusiast

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    Cutting through all the nonsense, this is what it actually means in terms of income tax and NIC for employed individuals per KPMG relative to your 2008/9 net income

    Income/year 09/10 10/11 11/12

    10,000 118.80 118.80 215.58
    25,000 118.80 118.80 140.58
    50,000 343.30 343.30 240.08
    75,000 343.30 343.30 115.08
    100,000 343.30 343.30 -9.93
    125,000 343.30 -951.70 -1429.93
    150,000 343.30 -2246.70 -2849.93
    175,000 343.30 -2246.70 -4224.93
    200,000 343.30 -2246.70 -5599.93

    Clearly engineered to give everybody a bit of a bung now and then smite those on £100k+. But not until after the next election, of course.

    http://www.kpmg.co.uk/budget/personal-tax/index.cfm
     
    Last edited: Nov 25, 2008
  2. mattc

    mattc Hardcore MB Enthusiast

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    and the idoit voters will probably go for it too. Can everyone please remember which people have been in charge of the ship for the last 12 years.
     
  3. Benzowner

    Benzowner Hardcore MB Enthusiast

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    And let us not forget, it was the previous administration who increased the VAT from 15 to 17.5% to cover the **** up on poll tax, it was also they who burried their heads in the sand during the last TWO recessions in the hope they would go away, but hey, lets not get political on here, its a friendly forum:D :D
     
  4. mattc

    mattc Hardcore MB Enthusiast

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    I agree Geoff; I did not say anything about wanting Vince Cable or George Osbourne running the economy.

    Personally I would shot the lot of them and watch the country descend into choas without their sterling leadership.....or would we all just carry on with our own lives, not interfering in others, and find we can live without them??:D
     
  5. scumbag

    scumbag Hardcore MB Enthusiast

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    Errrrr Matt for prez!:D
     
  6. mattc

    mattc Hardcore MB Enthusiast

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    Only if i can ride around in a Grosser like any self-respecting despot!
     
  7. janner

    janner Hardcore MB Enthusiast

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    Had a call from my builder today. He's going to redo the invoice for the work I just had done. Will save me about £200 :cool:
     
  8. Dryce

    Dryce MB Club Veteran

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    Ummmm. And the previous administration to that one?

    ISTR that a certain Dennis Healey was responsible for increasing tax to top rate income tax to 83% and extending VAT. That Labour administration required a bailout from the IMF (conveniently forgotten). And they left the country in 1979 as a complete basket case to the next administration. That set up us up nicely for the early 80s recession.

    Gordon inherited a much better situation than Healey left for his successor. Yet Gordon immediately started work on raiding private pensions. He introduced IR35. And made the tax system ever more complicated (and I would suggest vindictive).

    The comparison between the current mess and the early nineties recession is that between a hurricane and a squall.
     
  9. crockers

    crockers MB Club Veteran

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    So the consensus is that both parties have in the past and present made a mess...................but this shouldn't be a political forum so I would like to thank the OP for his figures.
     
  10. Benzowner

    Benzowner Hardcore MB Enthusiast

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    If you are talking about the 1979 election result when Maggie got in, I was working in the building trade then, and it colapsed under her skillful management. That elected government stopped all energy conservation grants, yes, there was energy conservation back then, the building trade went into recession. So let us agree they are both as bad as each other or this thread could develop the wrong way.:D But, just for information, 1979 under Labour the VAT rate was zero with a charge of 12.5% on luxury goods and an additional rate of 8% on other items. Geoffrey Howe in his first year as Chancellor increased the rate to 15% to pay for the income tax cuts, the only other increase was in 1991 by your old mate Norman Lamont, I see a pattern here
     
    Last edited: Nov 26, 2008
  11. SimonsMerc

    SimonsMerc Hardcore MB Enthusiast

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    When does the 15% rate start?
     
  12. Alfie

    Alfie Authorised Forum Sponsor Authorised Forum Sponsor

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    Monday officially.
     
  13. Alfie

    Alfie Authorised Forum Sponsor Authorised Forum Sponsor

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    As sure as death will come so will increased taxes.

    This latest pathetic excuse is simply aimed at the ill informed. How many people in the country will believe that because VAT is going down they will be better off and see cheaper prices. Millions I guess. How wrong they are. Many many retailers are not going to adjust their prices at all as it means reprinting price lists and menus etc. They will use it as an opportunity to make a little more profit. But wait....... VAT on fuel has come down now thats the bit the hauliers can reclaim. Thats the same hauliers that deliver food and goods to outlets. So they will be able to reclaim less and as fuel duty is going up, they will actually effectively be worse off. This will filter through to prices of just about anything delivered by road. So instead of making people better off they will actually be worse off. Couple this with the increased NI and hey presto we are worse off than before.

    This PBR has been ill thought, ill conceived and badly implemented. But then again it was delivered by a moron and his even dimmer side kick.

    Never in the field of human politics have so many been financially screwed by so few;)
     
  14. raymont

    raymont Hardcore MB Enthusiast

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    I hope you're wrong! I think you might be.

    Who'se going to notice 2.5% when discounts of 20 to 30% are being offered to get consumers spending? Even if it's passed on, which as Alfie says is quite likely not to happen. Other handouts are pretty inconsequential.

    Food won't be affected. Petrol / Diesel unaffected. Council tax unaffected (will probably rise).

    Does the VAT reduction apply to gas / electricity?

    To use VC's example of a TV, even if people are enticed by the small price drop it's an import anyway and won't do much for British jobs.

    People may well notice that tax is going to rise pretty soon and, according to some reports, VAT may go higher than 17.5%.

    When the recession really starts to bite, job losses, repossessions etc. voters might remember, and should be helped to remember by opposition parties, who got us into this mess and then who managed to dig us even deeper in.

    Of course you could be right. Churchill said something along the lines of 'the best argument against democracy is a five minute conversation with the average voter'.
     
    Last edited: Nov 26, 2008
  15. Alfie

    Alfie Authorised Forum Sponsor Authorised Forum Sponsor

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    Food and just about everything else delivered by road WILL be affected. It will be increased. See my earlier post :(
     
  16. Dieselman

    Dieselman Banned

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    This just begs the question as to who are the dim ones.? It would appear it's not Darling and Brown as the tax take will increase but be lapped up by the public...very skillful.

    This statement is and has always been accurate.
     
  17. Biscuit

    Biscuit Hardcore MB Enthusiast

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    the recent downturn is like the death throes of a Titanic like behemoth about to slip below the waves of the economy into recession. Amid the screaming and jumping, creaking and groaning the Chancelloor has issued us a rousing speech about how the ship will return to bobbing about on the surface in no time and we shouldnt really worry too much.

    dropping the VAT rate is like him issuing table tennis balls to pop in our pockets.....
     
  18. mattc

    mattc Hardcore MB Enthusiast

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    Answer in post #2

    Solution supplied in post #4:D

    And yes; I am keeping it light. I find all politicians equally repellant.
     
  19. Dieselman

    Dieselman Banned

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    Ooohhh...A Hollywood ending, how cute...
     
  20. OP
    OP
    Satch

    Satch Hardcore MB Enthusiast

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    And they cannot even manage a lie properly!

    http://4.bp.blogspot.com/_EQc_hLHXONE/SSxbVyE67bI/AAAAAAAADZQ/dfOxtySS0wI/s1600-h/VAT_bomb.bmp

    The story is this was an "option" and discared in favour of higher rate taxes and NIC. Rubbish: that only raises £670m and as the accounting firms have pointed out without such a VAT rise the pre budget numbers do not add up. Someone bottled out and supressed the planned rise.

    Also the flat rate VAT scheme for small businesses has been changed in such a way that they are actually worse off! Grrrrr!
     

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