Just Wondered Why The Tax Thresholds Weren't Increased.

[dave50]

Instead of taking 2p off national insurance. Is it because its more expensive? 

[newmodarmy]

Yes. Fewer people are affected by NI cuts. Those over pension age don't pay NI but some have good pensions and pay tax. Even the state pension on its own takes you close to the threshold so a small part-time job tips you over. And those who retire early on private pensions don't pay NI as its taxable but not NI'able. Also dragging more into 40 % band of tax brings in a lot

[barry1010]

Also working children such as actors pay tax but not NI.  I don't know how many under 16s are in that position, it would be interesting to know

[davebro3]

because Hunt wanted a cheap "tax cutting" headline.

[Gizmonster]

Same as everyone above .... plus ..... a 2p increase is easily reversed in the future, whereas I don't recall tax thresholds ever being lowered.  Once they're increased, that's it as far as I'm aware.

In my opinion, it's a temporary gimmick to try and win voters over ..... it will no doubt be back up to 10p+ soon enough.

[10ClarionSt]

This was my reply to a post yesterday, just after the "Bodget".

//I had a letter a couple of days ago from the Inland Revenue advising that due to my increase in State Pension, my tax free pay will be £13. Yep, £13, which means virtually all of the increase will be wiped out because the tax threshold has stayed as it is. This will apply to all earnings, so whilst Mike Hunt talks about a bodget for the future, we will all be worse off, actually. And he commended it to the house! Sheesh! 😅//