The Casbyness (casby) wrote,
The Casbyness
casby

2007 Budget - quick note

Low income earners. Let's take one as an example. Say they earn £8,000 per year.

OLD SYSTEM:

£8,000 - £5,035 allowance = £2,965

£2,965 - £2,150 (10% tax band) = £815

£815/100 x 22 = £179.30 tax to pay, plus £215 from the 10% band above, = £394.30 tax.


NEW SYSTEM:

£8,000 - £5,035 allowance = £2,965

10% tax band abolished.

£2,965/100 x 20 = £593.00 tax.

O.O

How does this simplification help the poor? Tax Credits are a joke. The basic tax threshold will need to be raised considerably higher if the new budget is wanting to help out those most in need of tax reductions.
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