ListenToTaxman.com

UK PAYE Tax Calculator / Salary Calculator

The number 1 free UK salary calculator tax calculator since 1998. Calculate salary, national insurance, HMRC tax and net pay

Public Opinion: Granny tax and high earners cut unfair!

A new poll has found that next year’s rate freeze for age related allowances and the high rate tax payer cut as being most unfair.

Over the last week, media coverage of the 2012 budget has revealed two major sticking points among commentators and the public. Firstly, George Osborne’s plan to knock five pence off the 50p tax for high-earners and secondly the plan to change age-related personal allowances (ASAs), a move which the media has called a ‘Granny tax’.

The YouGov post-budget poll of the public found some measures like the increase in personal tax allowance are predictably well-liked but they also discovered that Government measures like cutting the 50p tax rate and the so-called ‘Granny tax’ have proved vastly unpopular (only 18% support this). Their poll on fairness came out at just 32%, which compares unfavourably to the 48% of people agreeing the budget was fair last year.

There has been much discussion in the news on whether the change in ASAs is fair. After an initial backlash, many experts have written in support of the move. BBC Business Editor Robert Peston argued in his blog that although it may not be fairer, it’s easier to tax pensioners than higher earners who find ways to avoid tax.

Matthew Vincent of the Financial Times claims that today’s pensioners are ‘arguably the most financially blessed generation in history’ and that the promised changes in state pension will actually increase their overall income.

 

This article was published in our News section on 27/04/2012.

Some Guides you may be interested in

  • Scotland Vs England And Wales: What Are The Differences In Tax? There are significant differences to how much tax you pay in Scotland in comparison to England.
  • AirBnb vs long-term-rentals For the holiday maker & professionals alike, it’s safe to say that short-term let platforms - such as AirBnb, Flipkey, or Homeaway - have been a bit of a game changer.
  • Bookkeeper v Accountant Are you paying your accountant to prepare your books? Could you save some money by hiring a bookkeeper? Clare Doherty explains the key differences…
  • 5 Tax changes that may affect you this year Following the start of a new tax year, it’s always useful to stay abreast of changes to your responsibility. Certain legislative updates in 2019 have been overshadowed by the spectre of Making Tax Digital for VAT, causing smaller (but significant) changes to be overlooked.
  • Top Ten Claimable Expenses for Limited Companies Let’s start with a thought experiment. I’ll set the scene. You’re a limited company owner, and you, as the director, are the sole employee. You also - understandably – love learning about tax. You open up the Monday morning paper to find some exciting news - HMRC has hinted there are going to be some big changes in the upcoming UK budget.....
  • Salary vs Dividends A guide to tax efficient remuneration for Limited Company directors for 2019/20.
  • What changes to buy-to-let mortgage interest tax relief for landlords? Undoubtedly the biggest source of tax confusion for prospective landlord clients that we speak to here at TaxKings relates to the changes to tax relief for residential landlords, introduced by the UK Government in April 2017.
  • Top Ten Year-End Tax Planning Tips for Small Businesses Tax planning for small businesses is not always straightforward, in fact it can be a serious minefield for the unwary. The chances are however that you and your business could almost certainly pay less in tax, with help from your tax advisor. Here are some tips to get you started.
  • Making Tax Digital for Small Businesses Making Tax Digital for VAT (MTDfV) comes into effect from 1st April 2019. With Chancellor Philip Hammond announcing in his 2019 Spring Budget that MTD for other taxes will not be mandated until at least 2021, all of our focus is now on the VAT implementation.
  • End of Tax Year planning - Use your Allowances to reduce your tax bill. Last minute Tax Planning. Our guide to what annual allowances you have and how to use them to reduce your tax bill.

More from our News section