Budget - Income Tax cut

[Two_Sheds]

Canny Gordon!
he's cut income tax. Maybe he will become queen after all

[kirsty b]

Whats the catch?

[mandyballantyne]

missed the news, whats the deal??

[OverWyreGrower]

Basic rate of income tax to fall from 22p to 20p from April next year.

Lower starter rate of 10p to go, meaning all those who pay income tax will start at 20p in the pound - meaning little difference likely to take-home pay.

Top-rate income tax threshold will rise to £43,000 from April 2009.

Basic points on income tax taken from BBC News Website

[Two_Sheds]

Whats the catch?

the catch is: you have to have an income to benefit

[kirsty b]

So, it sounds much better than it really will be then?

[mandyballantyne]

A 2p drop next year!! not exactly worth getting excited about.

I am paying crazy tax at the moment 159L not because I earn a lot but because the have not taxed me properly on the company car for 5 years even although I phoned them (lots) to try and sort it.

It makes me so mad that its their error but I am being made to pay a 5year problem in less than 1.

[OverWyreGrower]

I drive a "gas-guzzling 4x4" so was slightly worried at all the hype of a green tax.

But... since my car is 11 years old, the new tax rates etc don't seem to apply to me

I doubt that overall the budget will help me at all...

[Two_Sheds]

OWG,
Budgets aren't meant to help you. They're a tool to keep the present Govt in power!

[OverWyreGrower]

I know... I was hoping for something nice though (we can all live in hope)

Maybe money off wine, or a larger reduction in tax, or... er, I dunno really...

[Birdie Wife]

What did he say about 4x4s? I couldn't find it in the news? If it's just for newer cars then that's fine, mine's about 16 years old but very happy to say it's still going strong.

[Two_Sheds]

Perhaps he could triple the tax on urban 4x4s and keep it the same for rural ones? Ie. penalising "fashion" vehicles not utility ones. Personally, I want Gordon to pay me for riding my bike (gave up my car in '91). I save the taxpayer loads: I don't cause congestion, I don't require a bypass or new motorway to be built, nor do I break pavements by parking on them. I still have to pay for them though, grrr!

[OverWyreGrower]

The VED will go up, but it looks like only on cars registered after 2001 (like the present system):

"The Chancellor has upped Vehicle Excise Duty (VED) on the highest polluting vehicles, including many people carriers and 4x4s.

The annual cost of VED for the most polluting vehicles will rise from £210 to £300 this year and then £400 in 2008.

Further pain could be on the way. In the past two Budgets the chancellor has raised VED on the most-polluting cars by far more than inflation.

Now may be the time to switch to a less polluting car.

As part of the government's carrot and stick approach, vehicles with smaller engines in the lowest polluting categories will pay lower VED."

Vehicles in band B will see VED cut by 30%.

A 2p increase in petrol duty has been deferred until October.BBC Website

There's also a Budget Calculator Click here for calculator

[bubblewrap]

Canny Gordon!
he's cut income tax. Maybe he will become queen after all

Bribing with our own money

[OverWyreGrower]

I am apparantly going to be £2.12 worse off next year (alcohol and fuel)