Budget 2024

Dempie55 anyone on 20% tax doesn’t pay tax on the first £1,000 of interest earned, it goes down to £500 at 40% and zero at highest rate.

ISA’s and Premium Bond wins are tax free.

Only if you have used up you starting rate for savings of £5000 and your Personal Savings Allowance of £1000.

Note you are not not eligible for the starting rate for savings if your other income is £17,570 or more.

DiamondLily

Susie42

The pension increase next month will probably drag me and thousands of others into paying tax on their state pension. I’m just glad that interest rates on my savings have increased but I feel sorry and angry for those who only have their state pension and are not eligible for pension credits.

I’m already over the threshold on my state pension because of previously paid SERPS, so I get clobbered for tax on my private pensions. Thankfully, the interest rates on my savings prop it all up.

Don't forget you will be taxed on the interest from savings as well. HMRC will send you a bill for any tax owing, automatically generated from analysis of the information they receive from your banks and building societies.

DiamondLily

Germanshepherdsmum

GrannyGravy13

I do find it odd that on another thread there was an overwhelming number of posters advocating for higher taxes, and now we have complaints about posters moving into the tax bracket…

Ah, taxes are for other people to pay.

I don’t know. I didn’t want anyone’s taxes to rise, including my own. 😗

I just don’t think anybody should be paying taxes at the highest level since 1948 when we are getting sweet FA for them, and public services are so underfunded that they are collapsing.

The shouting was from all sides, tho of course worse from the opposition. I agree felt that Hunt's delivery was shallow with too many snide remarks and digs at the opposition. He didn't deserve to be taken seriously.

Question (I've got a bit behind): is the use of AI in hospitals and care homes really ready to roll out now, without investment that will wipe out the economies? Imposing it on the care sector without robust testing would just make bad worse. When are the savings predicted for?

Germanshepherdsmum

GrannyGravy13

I do find it odd that on another thread there was an overwhelming number of posters advocating for higher taxes, and now we have complaints about posters moving into the tax bracket…

Ah, taxes are for other people to pay.

I don’t know. I didn’t want anyone’s taxes to rise, including my own. 😗

I'm already worse off! I was driving whilst listening to the budget on the car radio instead of listening to the sat nav, missed my turning which meant I went at least 20 miles out of my way and arrived home late and hungry.

awful and boring drawn-out budget speech. The shouting out was encouraged by Hunt and his stupid puerile jokes. The whole performance was shameful

The goverment is always talking about the need for economic growth.

This is what AccountingWeb has to say about the Budget increase in the VAT threshold.

The VAT threshold has been at £85,000 since April 2017, and this has resulted in fiscal drag bringing in more businesses into the VAT regime by virtue of increased inflation, cost of living and minimum wage rises.

Has this £5,000 increase resolved the cliff edge issue? Not really. Will it keep smaller traders out of the VAT system? Possibly. But then the cliff edge issue is that many businesses artificially keep their turnover below the VAT threshold. This stifles growth and long-term innovation, two aspects a struggling economy should want to focus on.

Why not go big and move the threshold to say £100,000? A nice round figure which moves the cliff edge quite some distance for those smaller businesses that just creep over the £85,000 threshold but aren’t able to scale up sufficiently enough to justify a VAT registration.

In other words, Hunt hasn't done enough.

GrannyGravy13

I do find it odd that on another thread there was an overwhelming number of posters advocating for higher taxes, and now we have complaints about posters moving into the tax bracket…

Ah, taxes are for other people to pay.

Martin Lewis explaining what the NIC cuts mean. Note that because of fiscal drag, most people earning between the tax threshold and £26,000 will be marginally worse off even when the latest cut is factored in.

www.bbc.co.uk/programmes/p0hgzxgf

I do find it odd that on another thread there was an overwhelming number of posters advocating for higher taxes, and now we have complaints about posters moving into the tax bracket…

CoolCoco

A lot of this was a party political shout out- just criticising the party opposite as having no plan when they just pinched some of their plan! Jeremy Hunt is simply robotic spouting of pre digested soundbites.

It’s not an election winning budget. Even the right wing media sycophants are pulling it apart.

But, hey, ho, on to an election at some point.👍

Susie42

The pension increase next month will probably drag me and thousands of others into paying tax on their state pension. I’m just glad that interest rates on my savings have increased but I feel sorry and angry for those who only have their state pension and are not eligible for pension credits.

I’m already over the threshold on my state pension because of previously paid SERPS, so I get clobbered for tax on my private pensions. Thankfully, the interest rates on my savings prop it all up.

Those who will have to start paying tax as a result of the pension increase will, in effect, receive 80% of however much of their income is above the tax threshold and 100% of their income up to the threshold. As I have already said, if there was not sufficient headroom to dispense with the freeze maybe it will happen in the autumn statement.

Or perhaps you would rather not have a pension increase? Do you expect to have it every which way? Working people don’t have that benefit.

The pension increase next month will probably drag me and thousands of others into paying tax on their state pension. I’m just glad that interest rates on my savings have increased but I feel sorry and angry for those who only have their state pension and are not eligible for pension credits.

A lot of this was a party political shout out- just criticising the party opposite as having no plan when they just pinched some of their plan! Jeremy Hunt is simply robotic spouting of pre digested soundbites.

LizzieDrip

*Why would the same government who have frozen the personal allowance til 2028, remove this freeze in 2024?*

They’ll do it just before a GE simply to win votes. TBH, after today’s shambles I feel pretty disgusted with those in power in this country. Everything is about chasing votes and political oneupmanship; it feels like nothing is about actually making the country better for ordinary people.

Lizzie, what did you expect? There has been a further reduction in NI which will benefit working people. The VAT threshold for small businesses has been raised, which will assist those businesses and people buying services from them. The support scheme for the poorest and most vulnerable, due to end on 31 March, has been extended. Fuel and alcohol duty remain frozen. The NHS is being supported in the delivery of AI for clinical and administrative efficiency. All these things benefit ordinary people. And don’t forget that pensions and benefits will rise next month.

Perhaps you could explain what, within the bounds of fiscal responsibility, you wanted to be done to make the country better for ordinary people.

The government’s plans are to use the frozen personal tax allowance to create fiscal drag until 2028-29, bringing four million additional people into the income tax net by 5 April 2029 and raise an additional £44.6 billion in tax. Those plans haven’t changed.

Raising of the high-income child benefit charge from £50,000 to £60,000 is to compensate higher-earners for the fiscal drag caused by freezing personal tax allowances which will push more and more people into the higher rate tax bracket.

In 2024/25, earnings over £50,270 will be taxed at 40%.

Up until now, if one person earns over £60,000, the family have to pay back all child benefit in extra tax. Between 50,000 and 60,000, some of it - 1% for every £100 of earning between £50k - £60k.

The Chancellor is saying to higher earners, we will take more of your earnings in tax but we will let you keep more child benefit.

He also announced a consultation on child benefit rules, to apply it to collective household incomes rather than for individuals from April 2026. At the moment the rules are unfair and favour some couples.

Why would the same government who have frozen the personal allowance til 2028, remove this freeze in 2024?

They’ll do it just before a GE simply to win votes. TBH, after today’s shambles I feel pretty disgusted with those in power in this country. Everything is about chasing votes and political oneupmanship; it feels like nothing is about actually making the country better for ordinary people.

This, from Sky News.

‘We've just been hearing from our economics and data editor Ed Conway about the tax burden.
Although he noted it has barely been a couple of hours since the chancellor delivered the budget, he highlighted "quite a few charts that the chancellor didn't refer to" during his speech.
The "most striking of all", he said, is taxes as a percentage of GDP, which is what economists refer to as the tax burden - "the overall measure of how highly taxed the economy is".
Ed said that after the autumn statement in November, the tax burden was forecast to reach the highest level since 1948.
After this budget, the tax burden is forecast to be "a little bit lower than last time around, so certainly there is a change - it is still heading up to the highest level since 1948".
This is despite the cuts to national insurance and other tax changes announced by the chancellor in the autumn statement and this budget.’

I don’t think that was affordable just now GG, but I hope it will be come the autumn.

Wow! What an appalling performance by all of them! I suppose it's "just high spirits" because they're MP's. But if someone on Universal Credit were to carry on like that on a public street......

Raising the threshold of child benefit from £50,000 to £60,000 will help middle income families, as will the 2p reduction in NI.

I would like to have seen an increase in the personal allowance which would have helped a lot of working age and pensioners.

They are getting considerable assistance with AI in order to improve clinical and administrative efficiency and reduce doctors’ admin workloads. Just chucking money at the NHS means they have more to waste. Efficiency has to be improved.