Quote:
Originally Posted by MrRobin
Darling says:
My calculations for as an example, a £100k salary are (Ignoring NI) --
OLD Personal Allowance of £5,435:
Gross - £100,000
Taxable - £94,565
20% Tax up to £36k - £7,200
40% Tax from £36k - £23,426
Total Tax - £30,626
NET - £69,374
NEW Personal Allowance of £6,035:
Gross - £100,000
Taxable - £93,965
20% Tax up to £35.4k - £7,080
40% Tax from £35.4k - £23,426
Total Tax - £30,506
NET - £69,494
i.e. you're £120 better off...
Has Darling fliped up AGAIN? Or am I a numpty??
|
No, Darling *is* a complete frolicking moron.
There are two things:
* PA increased by £600. Clearly the overall taxable income is cut by £600, so that is a cut of tax of 40% on £600 = £240
* Basic rate band narrowed by £600. This is an increase of tax from 20% to 40% = 20% net. 20% of £600 = £120
Total tax cut £120.
Where did they get these retards? They are supposed to be running the country. Hundreds of billions of pounds.
Not only did they manage to turn a tax cut into a disaster, but they bodged up the fix-up job as well.
It's very simple logic to see that if you increase the personal allowance by £600, then that's £600 less to pay 40% tax on. It's exactly the same as saying that each person has earned £600 less.
Everybody in middle income PAYE jobs knows that if they get a £600 bonus they only receive £360.
Whether you add the £600 on at the beginning, or take it off at the end, it's still a 40% tax cut on £600.
So increasing tax from 20% to 40% on that same £600 doesn't balance it out, does it?
Jesus Christ.
MORON
MORON
MORON
MORON