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  1. thedaffodils's Avatar
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    #1

    Re:10p tax band (UK)

    It would be mad to reinstate the 10p tax band," Lord Forsyth told The Daily Telegraph.
    Hi, could anyone please tell me the content of the 10p tax band in nutshell. And how do most Brits think? Are they for or against it? Which party proposes it?

    Thanks a lot.

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    #2

    Re: 10p tax band (UK)

    Quote Originally Posted by thedaffodils View Post
    Hi, could anyone please tell me the content of the 10p tax band in nutshell. And how do most Brits think? Are they for or against it? Which party proposes it?

    Thanks a lot.
    The Labour government, in the past, reduced the tax band to 10p. Now they have scrapped that and raised it to 20p.

    That is, before recently, the first 2,230 of earnings, above the personal allowance of 5,225, was taxed at 10p. Now everything above the personal allowance, up to 34,600 is to be taxed at 20p (it was 22p).

    The government has made a mistake as it is seen as a tax on the poor. The government would say that there is the Tax Credit system in place, and housing benefits are higher. But that is not being listened to.

  2. thedaffodils's Avatar
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    #3

    Re: 10p tax band (UK)

    You are helpful, Batfink. Thank you.


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    #4

    Re: 10p tax band (UK)

    And how do most Brits think?
    ALL HELL HAS BROKEN LOOSE in parliament! And the Brits who are affected by the change are far from happy about it, since it primarily penalizes the poor...and the governing Labour Party is supposed to be the party which will most look after the interests and welfare of the poor and needy, the lowly workers of this nation!
    The way it has worked in the past: say I am poor. I earn 11,000 a year. When I put in my tax return, the government allows everyone to earn, say, 5000 tax free - no tax has to be paid on that. With a 10p tax band (tax at 10p in the pound), this is just another way of saying that the next, say, 2500 is taxed at 10%. After that, the tax band is 22%. So :
    My first 5000 - no tax paid
    my next 2500 - I would pay 10% in tax, so 250
    that leaves 3500, which would be taxed at 22%, that is, 770.
    Total tax: 1,020
    With no 10p tax band, and the lowering of the 22% to 20%, then this changes to paying 20% tax on the whole 6000, which is 1200.
    SO IF I WASN'T POOR ENOUGH, THE GOVERNMENT WANTS ANOTHER (roughly) 180 FROM ME!

  3. thedaffodils's Avatar
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    #5

    Re: 10p tax band (UK)

    Hi David L.,

    Thanks a lot for your illustration. I basically understood.

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