based on the scraping of 10p in the pound for income tax but lowering the rate to 20p from 22p, based on a £15000 income will i be better or worse off?????? i think it just a way to rob the poor to give to the rich.
2007-03-22 01:38:05 · 4 answers · asked by bowboy101 1 in Business & Finance ➔ Personal Finance
If you are a single person on the standard tax code, on the old system you would be taxed at 10% from approx £5,000-Approx £10,000 then at 22% between £10,000 and £15,000. Therefore give or take a couple of pounds your annual tax bill would be £500 on the first part and £1,100 on the second totaling £1,600.
The new tax will be £20% of between £5,000 and £15,000 totaling £2,000 therefore without any working tax credits (If you qualify by having a family or children) you would be £400 per year worse off
2007-03-22 02:51:50 · answer #1 · answered by kbw 4 · 0⤊ 0⤋
KDW i thought the 10% was the first £2020 over the personal tax allowance which is £5036. Therefore, by my calculations, to break even with this new tax reform, you need earn £17000. If you earn less than £17000, you will be paying more income tax.
No doubt labour next campaign posters will be claiming "TAX REDUCED from 22% to 20" only omitting to mention the abolishment of the 10% band.
These new tax rates apply April 2008.
2007-03-22 10:45:02 · answer #2 · answered by Paul 2 · 0⤊ 0⤋
The only people who are going to benefit from this budget are families with kids and the government..
2007-03-22 01:46:33 · answer #3 · answered by sarch_uk 7 · 2⤊ 0⤋
On £15k you will be worse off. To benefit from this (so called) tax cut you need to be on between £24000 and £35000)
2007-03-22 01:44:14 · answer #4 · answered by leedsmikey 6 · 2⤊ 0⤋