Monday 8 May 2017

"Labour tax to hammer workers on £80,000"

... wails The Telegraph, despite not knowing how much tax Labour would make them pay if they get elected, which they won't.

Funny, The Telegraph's response was much more muted when Georgon Osbrown "hammered" families with children where one parent happens to earn a rather more modest £50,000 or more a year.

Pots, kettles. They are as bad as each other.

11 comments:

Sackerson said...

They are worse than each other.

Dinero said...

I cant see how the child benefit intereacts with the tax threshold.

Is it quick to fill in the details.

mombers said...

People with children under 18 are much less likely to vote Tory so a sitting duck for a tax hammering from them.

Mark Wadsworth said...

So, a good point well made.

Din, if hubby earns > £50k then he pays more tax to claw back the child benefit which wife receives.

M, yes.

Dinero said...

I still dont see it.
If the Husband earns >50K and then is in the higher bracket , why are the press linking that fact to CB.

Mark Wadsworth said...

Din, I refer you to my earlier explanation. George Osborne increased tax on dad's earning over £50k if wife claims CB. Is that so difficult to understand. I can show you my PAYE coding notice if you don't believe me.

Dinero said...

Yes I believe it.

So the tax man treats the two as a joint income but doesn't actually take into consideration what that joint income actually is. That seems to make no sense.

Bayard said...

"That seems to make no sense."

This is the tax code we are talking about here, why are you expecting sense?

L fairfax said...

@Mark Wadsworth
Would it not pay to more in a pension to avoid this?

Dinero said...

(not a tax expert)

it may incentivise the few >£80k who are dont allready contribute the max , to increase their pension contrib.

Mark Wadsworth said...

L and Din, maybe, maybe not. Depends on what specific rules Labour would introduce were they to be the next government, which looks a tad unlikely.