woolley Posted January 23 Share Posted January 23 (edited) 4 hours ago, Andy Onchan said: The Minister stated that the shortfall would or has been met by "Additional income tax revenue". Really? Yes. I think this stands to reason. There are a few more people employed, but also most people have had at least an inflation(ish) pay rise. Checking the records for 22-23 none of our employees were paid less than 10% above their 21-22 income, and tax allowances have not been raised, so there will also be an element of fiscal drag. Then thousands of people have substantial bank balances that until last year were earning nothing in interest. Now they are earning substantial amounts which are all taxable. Edited January 23 by woolley 1 Quote Link to comment Share on other sites More sharing options...
The Phantom Posted January 23 Share Posted January 23 19 minutes ago, woolley said: Then thousands of people have substantial bank balances that until last year were earning nothing in interest. Now they are earning substantial amounts which are all taxable. Good point. Most people won't have accounted for any bank interest on the income tax for years. It'll do doubt catch a few people out, but you'd imagine the next tax intake would be higher because of this. Quote Link to comment Share on other sites More sharing options...
Moghrey Mie Posted January 23 Share Posted January 23 (edited) 25 minutes ago, woolley said: Yes. I think this stands to reason. There are a few more people employed, but also most people have had at least an inflation(ish) pay rise. Checking the records for 22-23 none of our employees were paid less than 10% above their 21-22 income, and tax allowances have not been raised, so there will also be an element of fiscal drag. Then thousands of people have substantial bank balances that until last year were earning nothing in interest. Now they are earning substantial amounts which are all taxable. Yes That's an unfairness. Starting rate for tax on interest is £5,000 in England. Here it's zero. Also you can buy ISAs there. It seems to me that people on low earnings and with little savings are paying a disproportionate in income tax here. Edited January 23 by Moghrey Mie 6 Quote Link to comment Share on other sites More sharing options...
Banker Posted January 23 Share Posted January 23 4 hours ago, Moghrey Mie said: OK We need those 'vital frontline services'. So how about cutting some of the make-believe jobs that are not needed. If these departments can go £47 million over budget they should be scrutinised over their priorities and spending. I thought Julie Edge prided herself in being able to budget. That's what she used to say when she was first elected. Assume bulk is on teachers salaries which went up substantially and well in excess of budget allocated, Healthcare will be similar. Quote Link to comment Share on other sites More sharing options...
Banker Posted January 23 Share Posted January 23 19 minutes ago, Moghrey Mie said: Yes That's an unfairness. Starting rate for tax on interest is £5,000 in England. Here it's zero. Also you can buy ISAs there. It seems to me that people on low earnings and with little savings are paying a disproportionate in income tax here. Which is why income tax and NI needs increasing for higher earners . 1 1 Quote Link to comment Share on other sites More sharing options...
woolley Posted January 23 Share Posted January 23 58 minutes ago, Moghrey Mie said: Yes That's an unfairness. Starting rate for tax on interest is £5,000 in England. Here it's zero. Also you can buy ISAs there. It seems to me that people on low earnings and with little savings are paying a disproportionate in income tax here. It's not £5,000 tax free interest for everyone though. It's called the Starting Rate, but it's more complex than that, depending on whether you have other income. Then there's the Personal Savings Allowance - Basic rate taxpayers (20%) can earn £1,000 in tax-free interest each year, higher rate taxpayers (40%) can earn £500 in tax-free interest each year, additional rate taxpayers (45%) don't get an allowance. It's ridiculously complicated, and I've not had my calculator out, but I'd say that in most scenarios our higher personal allowance £14,500 vs £12,570, and lower basic rate on the first £6,500 on income 10% vs 20%, would take care of it. Here's the spiel for anyone interested. https://www.gov.uk/apply-tax-free-interest-on-savings Quote Link to comment Share on other sites More sharing options...
woolley Posted January 23 Share Posted January 23 55 minutes ago, Banker said: Which is why income tax and NI needs increasing for higher earners . In a tax haven? Quote Link to comment Share on other sites More sharing options...
quilp Posted January 23 Share Posted January 23 Just now, woolley said: It's not £5,000 tax free interest for everyone though. It's called the Starting Rate, but it's more complex than that, depending on whether you have other income. Then there's the Personal Savings Allowance - Basic rate taxpayers (20%) can earn £1,000 in tax-free interest each year, higher rate taxpayers (40%) can earn £500 in tax-free interest each year, additional rate taxpayers (45%) don't get an allowance. It's ridiculously complicated, and I've not had my calculator out, but I'd say that in most scenarios our higher personal allowance £14,500 vs £12,570, and lower basic rate on the first £6,500 on income 10% vs 20%, would take care of it. Here's the spiel for anyone interested. https://www.gov.uk/apply-tax-free-interest-on-savings Coincidentally, I had all this explained to me today by a very articulate young lady from the income tax office. 2 Quote Link to comment Share on other sites More sharing options...
woolley Posted January 23 Share Posted January 23 3 minutes ago, quilp said: Coincidentally, I had all this explained to me today by a very articulate young lady from the income tax office. Sounds like great pillow talk. 1 Quote Link to comment Share on other sites More sharing options...
woolley Posted January 23 Share Posted January 23 1 hour ago, The Phantom said: Good point. Most people won't have accounted for any bank interest on the income tax for years. It'll do doubt catch a few people out, but you'd imagine the next tax intake would be higher because of this. Yes, a lot of the increase in tax will come from this source. There will be some push back in the opposite direction as borrowers have to remortgage at higher interest rates and claim higher tax relief, but this will take a while to work through, and the relief is restricted to £5,000 per person nowadays anyway. Quote Link to comment Share on other sites More sharing options...
NoTail Posted January 23 Share Posted January 23 25 minutes ago, woolley said: In a tax haven? You're not keeping up. We are not a tax haven! We are a low tax jurisdiction. Mr Bell told us that. 1 Quote Link to comment Share on other sites More sharing options...
Andy Onchan Posted January 23 Share Posted January 23 I'm sure this has come up before but.... why were local authority bonds discontinued? Quote Link to comment Share on other sites More sharing options...
Andy Onchan Posted January 23 Share Posted January 23 Just now, NoTail said: You're not keeping up. We are not a tax haven! We are a low tax jurisdiction. Mr Bell told us that. I thought that we were referred to in Bells day as an "International Finance Centre"? 1 Quote Link to comment Share on other sites More sharing options...
Non-Believer Posted January 23 Share Posted January 23 37 minutes ago, woolley said: In a tax haven? Caught between a rock and a hard place, which is why the middle and lower incomes bear the brunt of being in the crosshairs. We're running out of money but we daren't tax the individuals and concerns that have the largest amounts because it's not what we "do". Options appear to be few unless there's mannah from heaven available that we don't know about. Quote Link to comment Share on other sites More sharing options...
Meoir Shee Posted January 23 Share Posted January 23 1 hour ago, Banker said: Assume bulk is on teachers salaries which went up substantially and well in excess of budget allocated, Healthcare will be similar. Still making things up. Edge said every 1% salary rise costs £500k (nonsense anyway, that is gross not net cost). Average salary rise 8.3%, absolute maximum of £4.15m gross, in reality way less net. Even by the accounting standards of a banker, just over 4 can’t ever be described as the bulk of 47. Quote Link to comment Share on other sites More sharing options...
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