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Steve_Guppy_Left_Foot

Cost of living crisis.

By Steve_Guppy_Left_Foot, in General Chat

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Tommy G

Tommy G

Posted
Posted

Will be a very interesting time for employers when it comes to wage rises this year. We gave out a generous at the time 4%, that seems measly now. You flick on the news and see Nurses and Teachers striking over double digit wage increases will spread to the private sector ''I want some of that too''. I'm sure margins are tight at businesses all over the UK, sector dependent obviously, but if you are in a sector where its difficult to pass on cost increases to customers whether it be raw materials or wage inflation, your margins just become squeezed. 

 

I suspect the CT rises wont bring in much more income for the treasury, because businesses will just be less profitable with inflation and wage inflation baked into next years profits and beyond. Tough times. 

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ClaphamFox

ClaphamFox

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Posted (edited)
1 hour ago, Tommy G said:

Will be a very interesting time for employers when it comes to wage rises this year. We gave out a generous at the time 4%, that seems measly now. You flick on the news and see Nurses and Teachers striking over double digit wage increases will spread to the private sector ''I want some of that too''. I'm sure margins are tight at businesses all over the UK, sector dependent obviously, but if you are in a sector where its difficult to pass on cost increases to customers whether it be raw materials or wage inflation, your margins just become squeezed. 

 

I suspect the CT rises wont bring in much more income for the treasury, because businesses will just be less profitable with inflation and wage inflation baked into next years profits and beyond. Tough times. 

Hunt's fiscal plan was based on projections for growth and inflation. The government believes that inflation will undergo a downward correction in a couple of years' time and that growth will pick up after the recession. Both of these assumptions are far from certain. Inflation may prove stickier than expected because of the cost-of-living crisis, wage pressures, etc. Boosting growth may prove very difficult because the UK has the worst workforce participation rate in the G7 - over 600,000 working age people have become economically inactive since the start of the pandemic. None of the other G7 countries are experiencing this. We need to get those people back into work to boost growth - but how?

 

https://www.reuters.com/markets/europe/half-million-uk-workers-drop-out-workforce-citing-long-term-illness-2022-11-10/

Edited by ClaphamFox
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BKLFox

BKLFox

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4 hours ago, filthyfox said:

Anyway...

 

Have I missed something.

The news keeps bleating about tax rises.

 

I can't actually see any apart from VED, which hasn't gone up for a long time. Everything else was just plans that have been redrawn?

 

Unless you have too much money coming in that the cost of living doesn't really impact you!

 

When was the last time you saw a poor person driving an electric car?

 

That's what i kept seeing yesterday with headlines of "Millions to pay more tax as £55bn black hole to be plugged" but as far as i could see it's the bracket of people that everyone wanted to be taxed anyway :dunno:
 

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ClaphamFox

ClaphamFox

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4 minutes ago, BKLFox said:

That's what i kept seeing yesterday with headlines of "Millions to pay more tax as £55bn black hole to be plugged" but as far as i could see it's the bracket of people that everyone wanted to be taxed anyway :dunno:
 

Lowering the top rate tax threshold from £150k to £125k will affect a relatively small amount of people in the short term. However, freezing income tax thresholds for until 2028 will mean that more people will be pushed into higher tax brackets as their pay increases (which it likely will because of inflation). So millions will pay more tax over the next few years, but the bulk of the pain has been pushed back to beyond the next election.

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Tommy G

Tommy G

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8 minutes ago, BKLFox said:

That's what i kept seeing yesterday with headlines of "Millions to pay more tax as £55bn black hole to be plugged" but as far as i could see it's the bracket of people that everyone wanted to be taxed anyway :dunno:
 

Simple - there is no uplift of tax brackets - so the more you earn the more likely you will be pushed into higher rate tax brackets. It’s for the next 6 years until I suspect that changes when all parties prepare for a GE

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leicsmac

leicsmac

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Just now, Tommy G said:

Simple - there is no uplift of tax brackets - so the more you earn the more likely you will be pushed into higher rate tax brackets. It’s for the next 6 years until I suspect that changes when all parties prepare for a GE

I would expect the landscape may well change considerably in that time, even if it's just for the GE in 2024(?)

 

Six years appears to be a very long time in world events these days.

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BKLFox

BKLFox

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33 minutes ago, Fazzer 7 said:

If you can afford to have a Tesla you can afford a piddling £170 a year road fund licence or whatever it’s called these days. 

On that what is it they are basing the tax on now, apparently from 2025 for EV this will be £10 for the 1st year then move to standard rate currently £165 but for all us on diesel / petrol we are hit on emissions with a bracket from £0->£2k+
Now i get whilst EV cars produce little to no greenhouse emmission there is further down the energy chain but how can they jump from zip to a standard rate whilst not directly contributing to emmissions? 
I wonder if its time to re-think the whole road tax scheme, is it money for climate changes or road infrastructure up keep & if the latter then surely it should be 1 rate for all?
I have a diesel & will pay less than the EV standard rate, obviously if that remains as is.

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leicsmac

leicsmac

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1 minute ago, BKLFox said:

On that what is it they are basing the tax on now, apparently from 2025 for EV this will be £10 for the 1st year then move to standard rate currently £165 but for all us on diesel / petrol we are hit on emissions with a bracket from £0->£2k+
Now i get whilst EV cars produce little to no greenhouse emmission there is further down the energy chain but how can they jump from zip to a standard rate whilst not directly contributing to emmissions? 
I wonder if its time to re-think the whole road tax scheme, is it money for climate changes or road infrastructure up keep & if the latter then surely it should be 1 rate for all?
I have a diesel & will pay less than the EV standard rate, obviously if that remains as is.

I certainly agree that there should be more clarity on such things and exactly what they're contributing towards.

 

Incentivising transition to vehicles that do not rely on ICE for motivation as soon as possible is of course however a no-brainer.

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BKLFox

BKLFox

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Posted (edited)
1 hour ago, ClaphamFox said:

Lowering the top rate tax threshold from £150k to £125k will affect a relatively small amount of people in the short term. However, freezing income tax thresholds for until 2028 will mean that more people will be pushed into higher tax brackets as their pay increases (which it likely will because of inflation). So millions will pay more tax over the next few years, but the bulk of the pain has been pushed back to beyond the next election.

 

1 hour ago, Tommy G said:

Simple - there is no uplift of tax brackets - so the more you earn the more likely you will be pushed into higher rate tax brackets. It’s for the next 6 years until I suspect that changes when all parties prepare for a GE

Ok so its about the current 20/40% bracket staying the same & not being pushed out meaning as peoples wages increase they dip into that, think i just had an Eliza moment :blush:,
although was/has there been serious talk by any party to increase the bands, is it a headline that wasn't really there as there wasn't plans to increase the bands anyway & its like saying millions to continue paying thousands because chancellor didn't scrap the council / insert tax (maybe there was & i've got my head up my 4rse :D)

 

 

 

 

Edited by BKLFox
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grobyfox1990

grobyfox1990

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24 minutes ago, BKLFox said:

 

Ok so its about the current 20/40% bracket staying the same & not being pushed out meaning as peoples wages increase they dip into that, think i just had an Eliza moment :blush:,
although was/has there been serious talk by any party to increase the bands, is it a headline that wasn't really there as there wasn't plans to increase the bands anyway & its like saying millions to continue paying thousands because chancellor didn't scrape the council / insert tax (maybe there was & i've got my head up my 4rse :D)

 

 

I don't know how any party can seriously think about increasing the income tax bands. We are flat broke and this is the easiest way to raise certain and reliable tax revenue.

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