No Increase In Income Tax

[nicebloke1]

It appears that there will not be any increase in employees income tax. What will continue is the tax threshold to remain frozen. The latter being put in place by Sunak. 

[newmodarmy]

Starmer is in charge. He could always change what Sunak did if he wants to. But the rumour is they are in fact going to extend the date beyond that set by Sunak. So clearly they think Sunak was doing the right thing in the circumstances. I don't.

[ToraToraTora]

No income tax, no VAT, no money back no guarantee.....etc

[Deskdiary]

Fiscal drag is a tax rise by any other name.

[bhg481]

I know it was only a manifesto promise but didn't Sumak claim the Tories would keep the Income Tax threshold just above the basic state pension level so that people who had only the basic state pension would not pay income tax as they do now.

[rowanwitch]

Affecting pensioners with private pensions.... The only thing that really helps is higher tax thresholds.

[naomi24]

//No Increase In Income Tax//

 

Well, there's one who's fallen for it.

[Deskdiary]

^^^he seems to be blaming Sunak for some reason. It is perfectly within this Govt's gift to increase the threshold but they are choosing not to. This isn't Sunak's fault.

[ToraToraTora]

"No Increase In Income Tax" - oh dear, no increase in income tax RATES! workers will pay more income tax, that is certain.

[youngmafbog]

There's always one Naomi.

I am really confused about blaming Sunak though. He has nothing to do with it now.

[douglas9401]

"I am really confused about blaming Sunak though. He has nothing to do with it now."

This type of thinking will, of course, now be the norm and no back references will be made to history, ever, by anyone. 🤣

[New Judge]

"It appears that there will not be any increase in employees"

Of course there will be.

Freezing thresholds is every bit of a tax rise as increasing the rate. Imagine this (figures are for illustrative purposes only):

You earned £20,000 a year ten years ago. You were allowed £10,000 tax free and paid 20% on the rest. So you paid £2,000 in tax.

In the past ten years the only rises you received were linked to inflation. Inflation totalled 25% in that period so you now earn £25,000. But the tax free allowance has been frozen for all of that time, so you now pay 20% on £15,000 (£3,000).

So you have eranings with the same buying power as ten years ago, but your tax bill has increased by 50%.

This is why governments love it when they hear people say "But I was hopeless at maths." They can tell bare-faced lies and people who were "hopeless at maths" (i.e. they cannot do a few simple sums)  believe them.

[youngmafbog]

Douglas, whilst it is true Sunak did it (and I didnt agree with it) he cannot be blamed for it continuing.  Sir 2TK and Theives are in charge now they can do what they like so for someone to argue Sunak did it is pretty spurious.

[Old_Geezer]

"They can tell bare-faced lies and people who were "hopeless at maths" (i.e. they cannot do a few simple sums)  believe them."

 

Yeah but, no but, you can fool all of the people some of the time, and some of the people all of the time, but you can't fool all of the people all of the time.

 

In any case any tax that increases eventually gets passed to the consumers/citizens.

[nicebloke1]

11.57 The same old hat remark. With no input whatsoever on the op.

[mushroom25]

// .....not be any increase in employees income tax. //

we can't possibly know what that means until the word "employee" is properly defined, something all of the government talking heads have resolutely failed or refused to do this past week.

they can't even decide amogst themselves what the word "woman" means so I'm not holding my breath on this one either.

[New Judge]

“11.57 The same old hat remark. With no input whatsoever on the op.”

I think it’s fairly common ground that the income tax thresholds will remain frozen. So with that in mind, to suggest that “…It appears that there will not be any increase in employees income tax” shows that little thought has been given to that, as I tried to illustrate @13:17.

“..we can't possibly know what that means until the word "employee" is properly defined, something all of the government talking heads have resolutely failed or refused to do this past week.”

I think the PM has been struggling more to define what the term “working people” means. He suggested at one point that only people who do not have a pot to pee in can be considered “working people” as he said one of the qualities of that group was that they must be unable to write out a cheque to address an unforeseen problem.” I think even the PM should be able to grasp that “employees” (at least as far as income tax is concerned) are people employed by an employer.

[Davemano]

Totally agree with NJ 15.17  If you are already paying tax on your pension(s) any increase in those pensions is subject to tax.

Hope I've not over duplicated what has already been said. 

[THECORBYLOON]

The Labour manifesto pledge was that they would, "not increase National Insurance, the basic, higher, or additional rates  of Income Tax, or VAT."

It is the rate of basic Income Tax that will remain unchanged, not the amount.

[Deskdiary]

Will we get an actual definition of what a "working person" is in the budget? Despite the ham-fisted attempts so far, there isn't a definitive description, which I find surprising given even before the election they were referring to "working people".

 

Somebody on £200k a year will be paying about £85k in Tax and NI, and to earn £200k clearly that person would have to be good at their job and without question will be putting in long hours. By any objective measure this person is a "working person", or is it, as I strongly suspect, Labour only consider the low paid to be "working people", and by definition the well paid are not "working people".

 

They've tied themselves up in knots with this one.

[youngmafbog]

//It is the rate of basic Income Tax that will remain unchanged, not the amount.//

Exactly so people will be paying more tax and hence Labours pledge is broken.