Rachel Reeves to raise taxes?

Casdon

Norah

growstuff

My ex MiL has a live-in carer. I haven't had anything to do with her for years, but I've been told it's considerably cheaper than a care home would be. It's also better because my MiL has Alzheimers and wouldn't cope well with a change of environment.

My ex MiL pays the carer a full-time wage and provides accommodation plus all the statutory insurance and holiday pay etc. She also has somebody to do her garden and somebody else to do housework (but she's had them for years).

I suspect live-in care is considerably more reasonable. Our plan is the same as your x mil - pay for care, provide a lovely accommodation, pay all necessary insurance, etc - plus employ gardener, cleaner etc.

Seems, for us, best way forward when needs must.

It depends a lot on what the needs of the person being cared for actually are, and what other help they have from spouse or family. If the person has a stroke, or other debilitating condition with immobility which means double handed support is needed, or needs somebody with them 24/7, eg a dementia sufferer who wanders, then a care home is cheaper (and safer) than home care. None of us know until we get to that point - in their mid nineties my parents are managing with a career who goes in for 30 minutes to get my mum up and dressed, a lunchtime meal carer, and a cleaner - but the family also help out.

Everyone must manage in their own way.

Perhaps the point of the tread is that income taxes must go up, bands must be adjusted up - in order that some people are not hungry and cold.

Norah

growstuff

My ex MiL has a live-in carer. I haven't had anything to do with her for years, but I've been told it's considerably cheaper than a care home would be. It's also better because my MiL has Alzheimers and wouldn't cope well with a change of environment.

My ex MiL pays the carer a full-time wage and provides accommodation plus all the statutory insurance and holiday pay etc. She also has somebody to do her garden and somebody else to do housework (but she's had them for years).

I suspect live-in care is considerably more reasonable. Our plan is the same as your x mil - pay for care, provide a lovely accommodation, pay all necessary insurance, etc - plus employ gardener, cleaner etc.

Seems, for us, best way forward when needs must.

It depends a lot on what the needs of the person being cared for actually are, and what other help they have from spouse or family. If the person has a stroke, or other debilitating condition with immobility which means double handed support is needed, or needs somebody with them 24/7, eg a dementia sufferer who wanders, then a care home is cheaper (and safer) than home care. None of us know until we get to that point - in their mid nineties my parents are managing with a career who goes in for 30 minutes to get my mum up and dressed, a lunchtime meal carer, and a cleaner - but the family also help out.

The wife of a friend here in France has Alzheimers. They have a sort of"au pair" who has her own apartment in the house. The carer works week day mornings and has afternoons and evenings off. I'm not sure about the weekends. I think that the couple do get some financial help towards the "au pair" and cleaning. It work well at the moment (the carer is a GM who wants to learn more English) but I'm not sure what will happen when the wife needs more personal care.

growstuff

My ex MiL has a live-in carer. I haven't had anything to do with her for years, but I've been told it's considerably cheaper than a care home would be. It's also better because my MiL has Alzheimers and wouldn't cope well with a change of environment.

My ex MiL pays the carer a full-time wage and provides accommodation plus all the statutory insurance and holiday pay etc. She also has somebody to do her garden and somebody else to do housework (but she's had them for years).

I suspect live-in care is considerably more reasonable. Our plan is the same as your x mil - pay for care, provide a lovely accommodation, pay all necessary insurance, etc - plus employ gardener, cleaner etc.

Seems, for us, best way forward when needs must.

My ex MiL has a live-in carer. I haven't had anything to do with her for years, but I've been told it's considerably cheaper than a care home would be. It's also better because my MiL has Alzheimers and wouldn't cope well with a change of environment.

My ex MiL pays the carer a full-time wage and provides accommodation plus all the statutory insurance and holiday pay etc. She also has somebody to do her garden and somebody else to do housework (but she's had them for years).

ronib

Dinahmo thanks for your reply. I should have mentioned that care at home costs are mounting up for a friend as opposed to care in a care home facility. So a bit of a puzzle as how to make sure there’s enough money left for just the basics.

Extended care at home can be expensive if all carers are paid, it only really works if the family are willing to share a substantial part of the care. My family know they will be!.

Dinahmo thanks for your reply. I should have mentioned that care at home costs are mounting up for a friend as opposed to care in a care home facility. So a bit of a puzzle as how to make sure there’s enough money left for just the basics.

My BIL developed Parkinsons and was cared for at home for some time. However, eventually he needed to go into a care home and my SIL enquired about council care. They would put a charge on the house but would only take the money when she either downsized or died. She didn't need it because he did not live for much longer after going into the home.

Dinahmo The problem is that with all wealth tied into the house, is equity release or downsizing if capable the way to pay for home care costs? Or is it better to have the local council take over and put a charge on the property? Local council assessments seem to leave a minuscule amount for running a house!

ronib

I can’t help think that pensioners who are not receiving pension credit will suffer under this government. Huge energy costs are forecast for October. Also pensioners having to pay in excess of £1k monthly for personal care will be financially hit.

Many people viewed their family home as their savings. When we bought our first home we put as much money into buying it as we could afford. This meant that we did not invest in pension schemes as for our life we sere self employed and did not have an employer funding schemes.

When we did start a pension plan it was with Equitable Life. Supposedly the best (and the oldest I think) on the market. Its collapse put us off pension schemes long term.

Casdon my mistake I thought it was £149 a month…
And care costs definitely need thinking about even if you don’t need care at the moment. Savings vanish very quickly.

It’s important not to over-egg the fuel costs pudding though.
www.bbc.co.uk/news/articles/c9qgy11w5dyo
This is a balanced article I think, which explains the energy costs trajectory as well as the impact of the removal of the Winter fuel allowance.

I can’t help think that pensioners who are not receiving pension credit will suffer under this government. Huge energy costs are forecast for October. Also pensioners having to pay in excess of £1k monthly for personal care will be financially hit.

We can all have a good time or bad time speculating about tax rises but it's the wealthy who can afford tax advisors to help them pay less tax. The DT and other rags will stir up feeling about tax rises but I suspect most of us will not be in the firing line for extra taxes beyond the effects of fiscal drag. It will be companies and those paying 40% or above income tax.

Thank you Merion, a really interesting piece re possible tax increases and their impact PS hope am replying correctly as haven’t been on gransnet before!

Yes I realise that the Cons are responsible for this one Wwm2..

ronib

My day didn’t work out as expected - I had to pacify an elderly friend over her tv licence renewal for £170 approximately. She was not best pleased.
Government doesn’t like pensioners does it?

April 2024

My day didn’t work out as expected - I had to pacify an elderly friend over her tv licence renewal for £170 approximately. She was not best pleased.
Government doesn’t like pensioners does it?

growstuff

David49

But many people with wealth do make more than 5% interest

And they pay 40%+ tax on it before they can spend or reinvest it
It’s the capital intensive industries that would suffer with an across the board wealth tax

I think you're being a little naive. They don't all pay 40% - according to the financial advisor I saw with my partner. Wealth held by private individuals is undertaxed in the UK, compared with earned income. In any case, I'd be surprised if Reeves goes down the wealth tax route. There are other ways of raising money (especially from those with more than the mean).

I’m certainly not naive having been in business for 50+ yrs I know exactly what goes on.

You changed the subject, Private Wealth by individuals is invested in something it’s not just stuffed into a mattress what the tax man knows about is taxed, whether it’s a current account earning 1% or property earning 5% and more on income. In the case of property it also has CGT, not all top rate but they are not the very wealthy and tax will be paid on inheritance if it hasn’t been spent.

It's better to get unwelcome decisions done early so they are old hat by the time of the next General Election. All politicians know this. The Tories would do the same.

David49

I think she started off on the right lines, whether she will do as much as I would like to see remains to be seen.

One area that has not been discussed is Council Tax, whereas I think it’s probably enough at the lower levels it needs increasing substantially at the top end, we might get a half decent care service then. If we want high quality health and care services we need to dig deep.

I agree on that. All she needs to do is add another couple of bands.

David49

But many people with wealth do make more than 5% interest

And they pay 40%+ tax on it before they can spend or reinvest it
It’s the capital intensive industries that would suffer with an across the board wealth tax

I think you're being a little naive. They don't all pay 40% - according to the financial advisor I saw with my partner. Wealth held by private individuals is undertaxed in the UK, compared with earned income. In any case, I'd be surprised if Reeves goes down the wealth tax route. There are other ways of raising money (especially from those with more than the mean).

But many people with wealth do make more than 5% interest

And they pay 40%+ tax on it before they can spend or reinvest it
It’s the capital intensive industries that would suffer with an across the board wealth tax

Maerion

Thanks for the taxingwealth link, MaizieD. Particularly interested in Murphy's blog about reforming Companies House ...

Its failings as a company administrator are likely to contribute to the estimated sum of more than £200 billion of fraud undertaken in the UK each year, much of it through limited companies about which literally nothing at all is known because no demand for information is ever made of them.

taxingwealth.uk/2023/10/18/taxing-wealth-report-2024-reforming-companies-house-might-raise-6-billion-of-tax-a-year/

When submitting a tax return for a limited company a copy of the financial accounts must be attached. Surely the people who should be looking for fraud should be HMRC. They have started with the Bounce Back Loans made during covid.
The banks didn't do all the checks that they would normally do because the loans were guaranteed by the govt. Many of these were used for personal purchases, rather than for keeping a company going.

There is a new act called Economic Crime and Corporate Transparency Act which will require small companies to file a full profit and loss account. At the moment they just need to file a simple balance sheet which is not very helpful to those looking at a company's finances.

I think she started off on the right lines, whether she will do as much as I would like to see remains to be seen.

One area that has not been discussed is Council Tax, whereas I think it’s probably enough at the lower levels it needs increasing substantially at the top end, we might get a half decent care service then. If we want high quality health and care services we need to dig deep.