Sure your not getting it mixed up with the previous governments stealth tax on jobs by increasing employers N.I.?
I'll have a fish around to see if I can find anything in the small print and get back to you.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Main points on Taxes seem to be these (taken from the Guardian Website) :
Corporation tax, currently 28%, to fall by 1p in the pound a year for four consecutive years until it reaches 24%.
Small companies tax to fall to 20%.
New firms outside south-east/east to be let off employer national insurance contributions, up to £5,000, for each of first 10 employees recruited.
VAT to increase to 20% on 4 January next year. Will generate over £13bn a year of extra revenues.
Government to work with local authorities to freeze council tax for one year from April next year.
Capital gains tax, currently 18%, to increase for higher earners to 28% from midnight. Low and middle-income savers will continue to pay 18%
Personal income tax allowance to be raised by £1,000 from April to £7,475. Will take 880,000 people out of tax altogether.
Higher rate income tax threshold frozen until 2013.
Planned tax-relief for video games industry to be scrapped
No mention of any rises in NI... Which is as I would have expected as that was the main thrust of the attack on Labour that basically their taxes were making it cost effective to only employ a non UK based workforce.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I was actually referring to previous Budgets (by Labour). These changes are still going through though some of them will be eased by today's budget.
It doesn't help that things aren't actually announced in budgets anymore but rather in pre-Budget Reports. I've had to go trawling though all of these.
The 1% increase I was talking about - this may have been announced two or three years ago and was initially 0.5% but then another 0.5% was added on to it. I'm just trying to figure out if it is added to the employer contribution, employee contribution, or both.
Sure your not getting it mixed up with the previous governments stealth tax on jobs by increasing employers N.I.?
Yes. It is this increase I am trying to find out about and it is driving me nuts.
EDIT : Is is just the employers contribution that is changing.
-- Edited by Peasie on Tuesday 22nd of June 2010 02:03:28 PM
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Never buy black socks from a normal shop. They shaft you every time.
My belief is that the whole area of stealth taxes on jobs has been scrapped by the current government.
It's my belief that it is not now being brought in at all but if it had been it would just have been the employers contribution, not the employee's.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Well after doing a bit of further reading I see nothing that says the increases in rates are not going ahead. Which means 1% on both employees and employers contributions.
Where it gets complicated is the starting point. I've read from previous news articles that the starting point of £110 per week is increasing to £135 per week. Today's budget says £21 a week on top of an increase for inflation which would be less than £135. (or would it - I just used a 3% figure for inflation).
Vuvuzelas - these are really loud. I haven't paid any attention to them on the tele as I can turn the volume down. But someone outside is blowing one and they are LOUD. Nothing to do with national insurance.
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Never buy black socks from a normal shop. They shaft you every time.
Yes, your sort of right and wrong. (about the NI that is, not the Vuvuzelas).
As per the election pledge the new government has indeed scrapped the stealth tax but there will non the less be an across the board NI increase from April 2011.
Have a look at the governments webpage that has just been updated :
At least this is being straight with people, not trying to sneak something in by the back door which was invisible to most voters.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I had been on that page and this is partly what is causing confusion.
The budget says £21 a week on top of inflation. This page says £570 (year) on top of what was previously announced. Well, previously announced was the increase to £135 per week starting point.
Being straight would be to say what the estimated figure was for 2011-12 based on the current rate of inflation.
I can see I'm not going to have much joy when I eventually get round to doing the self-assessment exam with the ICB if I can't grasp these figures.
Now I have a yapping dog replacing the vuvuzela to annoy me. (Or as we say in this neck of the woods "yapping dug").
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Never buy black socks from a normal shop. They shaft you every time.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
But in total it will be 1% when you add on the 0.5% increase that was announced in 2008 (to be implemented in 2011). There are two increases of 0.5% (= 1%) to be implemented.
The Plain English campaign clearly hasn't reached the people that write these things. It would be a lot simpler if they jsut said the rate from April 2011 is 12% and 13.8%.
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Never buy black socks from a normal shop. They shaft you every time.
Your right Peasie, You could scream at the way these things are announced couldn't you! When I glanced at it I just read it as a 0.5% increase.
I'll put that one right up there with the other tax one of going back 3 + 1 years rather than 4 years.
When you know what the heck they're talking about it's current year and the three years prior to that but to a complete numpty like me you wonder for starters what on earth they're talking about when they come out with such things.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
All I want to do is get a spreadsheet to see how this years figures will change with the new rates/threshold next year.
One thing I hate about Budgets is the way they (news websites etc) will say how a family of 4, that drniks and smokes and has two cars will be better/worse off but they will never break it down into the various parts. For someone that doesn't smoke but does drink and only has one car.
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Never buy black socks from a normal shop. They shaft you every time.
I could have sworn that Cameron said that the Employers 1% rise in 2011 was to be scrapped as it was a tax on jobs but the 1% would remain for Employees. I'll have to check it out cos my theatre company is currently budgeting for 2011 and with the Arts Council cuts not to mention the LA ones it's gonna be pretty tight.
Assume makes a ass of you and me!!! and assumptions are dangerous. It would be eminently sensible if the threshold remained the same for Class 4 however, since when has any government used sense in anything.
"Sure your not getting it mixed up with the previous governments stealth tax on jobs by increasing employers N.I.?"
"No mention of any rises in NI... Which is as I would have expected as that was the main thrust of the attack on Labour that basically their taxes were making it cost effective to only employ a non UK based workforce."
"My belief is that the whole area of stealth taxes on jobs has been scrapped by the current government. It's my belief that it is not now being brought in at all but if it had been it would just have been the employers contribution, not the employee's."
"As per the election pledge the new government has indeed scrapped the stealth tax but there will non (sic) the less be an across the board NI increase from April 2011... At least this is being straight with people, not trying to sneak something in by the back door which was invisible to most voters."
best to keep political views out of simple questions on NI thresholds and rates, only ends up wasting space and time you should be spending back at tory HQ Shamus
As Shamus is away from home much of the time now due to business and does not get on the forum very frequently, I feel I should come to his defence on the unwarranted attack in a first post by a new member on a long standing member who has given a tremendous amount of advice to other members. Shamus (who to the best of my knowledge has nothing whatsoever to do with any political party) is entitled to his views as is anyone else.
... At least this is being straight with people, not trying to sneak something in by the back door which was invisible to most voters."
