Abolition of 10p Tax.

[1rovert]

I could see this comming. After stopping everyone from smoking, how else were they going to make up the tax??



I gave up years ago, when they wanted 10 shillings a packet.

[rojash]

In actual fact, because the standard rate has been reduced from 22 to 20%, most tax payers will end up paying less tax. The 10p tax is not about getting more money into the government's coffers, it's about taking money from the poorest members of society and redistributing it to Daily Mail readers and their ilk.

[NiceCupOfTea]

Unless you earn around �38,500 or above you will be worse off by the loss of the 10% rate band.

[tigerlily11]

My son works for Maplins. They already treat their workers like rubbish so this will make tings worse. My daughter won't be very pleased either.

[jno]

not that rich, NiceCuppa.

From the BBC:

Winners:
Most people/ with incomes of �18,000+
Under �18,000 but aged 65+ and therefore eligible for higher personal allowances
Under �18,000 but with young children and therefore eligible for child tax credits

Losers:
Under �18,000 and ineligible for working tax credits because under 25
Retired early and therefore ineligible for higher personal allowances
Part-timer working insufficient hours to qualify for tax credits

Note that this is under all the tax changes, as rojash pointed out, not just the 10p abolition.

[kempie]

Allowing for changes to NI thresholds and personal tax allowances, those who will see a reduction in their takehome pay are earners of between �5,932 and �15,074 - the worst hit being earners on �7,457 who lose �12.69 compared to last year.

[kempie]

^^^ that �12.69 is per month, so around �152.30 worse off for the year (based on "usual" tax codes 522L for 07/08 and 543L for 08/09).

[andrea81]

Don't understant ;0(

Will someone explain what they mean (nut shell please!)

x x x x x

[buildersmate]

Quite so Kempie. But its easier for those trying to cuddle up to their constituents in marginal seats to ignore the facts.
This was announced in the budget LAST year - over 12 months ago. The time to have a decent debate over it would have been then, not now.

[sandbach99]

Retired women over 60 but under 65 with a private pension also lose out

[weecalf]

The goverment is under pressure from the Labour MPs so we are told .Wait and you will see a uturn but along side it will be a cunning change of tactics where they will seem to be giving it back but in actual fact it will mean the same to the low paid earners paying more tax .Its the old tactic float an idea see how it goes down with the public while you really wanting to change to a new system anyway .They are stalling for time to think up this new plan .