Online petition

Originally posted by helden
http://petitions.pm.gov.uk/10penceband/

Don't see the point of this myself. It impacts on everyone not just the lower paid.

The loss of the 10p band has potentially increased someones liability by about £220 per year or £4 per week.

There are far more inequitable things within the tax system that need addressing first.

For instance take two families with two children.

Both have 1 working and 1 not working spouse.

The both make £16K per year but family 2 works an extra 360 hours (to support his family and earns an addional £4K in overtime .

The lower earners will be entitled to £4541.94 Child Tax Credit and Working Tax Credit (less the childcare element of Working Tax Credit) £552.42 giving them an additional income of £5094.36 per year.

The higher earner will be entitled to £3,594.20 Child Tax Credit.

Assuming both on a 522L code

Lower paid receives £1.059.16 per month or £12,709 per year.
Higher paid receives £1282.50 per month or £15,390 per year.

By the time you take into account the tax credits the lower paid has a net annual income of £17,804 and the higher paid gets £18,984.

Is it fair that family 2 works an extra 360 hours to gain an extra £1,180 over family 1? It mean that the extra hours worked are effectively paid at £3.28 per hour!!!!

Is it fair that a seaman, who makes £30K per year working
30 days on/30 days off and is paid off for a trip in say Norway is entitled to reclaim ALL the tax deducted under the Foreign Earnings Deduction?

Is it fair that two pensioners with identical incomes pay different amounts of tax because one has a state pension and bank interest and the other a state pension and dividend income?

Sort out the other anomalies first.

Originally posted by huckleberryhound
Everybody is going to have to tighten their belt, and the government is going to have to get money from everyone....why shouldn't the Low paid be included in this ?

Do they shop at John Lewis to?