You might also be interested in
Replies (4)
Please login or register to join the discussion.
I know very little about 'Universal Credit' and benefits in general bar from the media hype. To see the working practicalities as highlighted by this example, just rams home the effective indirect taxation to those in most need brought on by the rise in personal allowances from this budget.
To me this is totally unjust and hitting those who can least afford it. The hardnosed out there would argue this would encourage those to work rather than receive benefits. However, there are of course many where this simply isn't an option.
This highlights the fact that those receiving the greatest benefit from this hand out are those with allegedly the broadest of shoulders.
I apologise if this sounds too political as it wasn't meant to be, merely acknowledging this practical application raised by the LITRG.
Many thanks to the LITRG.
Beware the sleight of hand! Simultaneously, the NI upper threshold is being increased to £50,024. This means that all those "tax savings" charts in today's Newspapers are incorrect. These tables (copied from Treasury press releases) are showing £860 pa tax savings for those on £50k pa, i.e assuming a 20% saving on the raised threshold slice. But the actual net savings will be just 12% max, and even that's before taking into account any increased pension contributions which might be payable under auto-enrolment. Let's halve those savings, shall we?
The Chancellor giveth and the Chancellor taketh away!!
Like most other commentators you've forgotten to say that the increase in the 40% tax threshold does not apply in Scotland.
The current RoUK threshold is £46,350 compared to £43,430 in Scotland.
The Scottish Government issues its own budget in December....hope to see coverage of that on accountingweb for your readers north of the border.