10p Tax Thingy

[Nob3y]

Can sombody explain to me very simply what the fuss is about this 10p tax thingy thats been on the news of late?

I cant work it out and have never heard of it before.

Thanks in advance

[Jacques]

All those on low income (students, part-time workers etc.) used to pay 10p tax. This has been doubled to 20p meaning that those on low income are on even lower income. Basically you earn not much and pay even more tax on it.

Astonishing thing is, that when it was announced twelve months ago nobody did a damned thing. Now with elections coming up .......

[Nob3y]

So is this 10p out of every ? you earn?
And whats classed as a low pay worker?
whats the upper level to be a low paid worker?

[Sam Slater]

Aye, more evidence of Labour distancing themselves from their traditions.

Funny thing is that the Tories are complaining about it! I don't know how they have the cheek considering that they didn't bat an eyelid about people once working for ?2.50ph and paying around 20% tax.

It only looks like the Libs are against it - in reality.

[Jacques]

I don't work for the tax people but a basic guide (fag packet maths):

Your first ?5k was tax free
Your next ?5k was taxed at 10p
Anything above was taxed at 22p

With the change
Your first ?5k is tax free
Everything else is at 20p

Let's say you earned ?10k - ?5k is tax free, the next ?5k, instead of paying 10% on you are now paying 20% or double the tax.

By the time you get over ?18.5k or so, the 2p in every pound less lax you have paid on everything over the first 10k, means you work out better. Under that figure you are worse off and paying more tax.

[Nob3y]

ahhh right makes more sense now,thanks for clearing that up !

[the man, the legend]

It's a disgrace. I can't believe that a labour government even thought about it in the first place. This will have the same effect on Labour as the Poll Tax did on the tories.

[randyandy]

Jacques wrote:

> Astonishing thing is, that when it was announced twelve months
> ago nobody did a damned thing. Now with elections coming up
> .......
>

Indeed it is.

[centrestage]

Government sure are gready!!

[Trumpton]

Nob3y wrote:

> I cant work it out and have never heard of it before.

You'd better check your tax returns to make sure you haven't been paying too much tax. !wink!