Lot's of sources are saying that the tax changes in the budget cancel each other out. I can't see it myself. I have a PAYE spread sheet and I plug in all the values as I see them and say a notional salary of 40k and I make it that someone on that will be about �1062 better off using standard allowances etc, what have I missed? Here are the main figures: Tax free allowance = 5225, higher rate threshold=34600, NI range 5200-34840, basic rate 20% upper rate 40%, ni rate 11% + 1% for the bit above the threshold.
They say there are winners and losers but overall the budget is neutral. The Liberals put there finger on the button when in the chamber they said the working poor will be handing money to the rich.
On Jeremy Vine today they had the money expert on- a chap rang in who earns 15k- one of the real low paid workers.... he will be worse off come next April. Generally it seems that up to 25k you are worse off- 25K is neutral and above that you are better off...... beats the hell out of me!!
on �15000 you lose about �70 a year. On �28000 you gain �30 or so. On �35000 you gain �300 plus. On �40000 you lose �55. On �45000 you gain �5.90. It is indeed all over the place, but as I understand it Brown didn't claim to be reducing the tax take, just simplifying the system (something the Tories had been demanding). The system is simpler, even if working out your own profits and losses is not.
so basicaly if you earn a lot of money you will be paying less tax. If you're poor you deserve to be taxed more. Maybe next year the poor will be euthanised