Bend over

[Ruprect]

Vaseline 3 for 2 at boots. Good job too, because tax rises are on the way:

http://business.timesonline.co.uk/to...cle6041227.ece

In the PreBudget Report, Mr Darling announced a new top rate of tax of 45 per cent for people earning more than £150,000, the end of the tax-free personal allowance for higher earners and a 0.5 per cent rise in national insurance for employers and employees.

All were deferred until after the general election but it emerged from leaks that he had also considered raising the rate of VAT, currently reduced from 17.5 per cent to 15 per cent, to 18.5 per cent or even 19.5 per cent. Even so, Mr Darling is known to be looking at targeted measures in his statement on April 22 – likely to involve more spending – to help those affected by the recession.

[DimPrawn]

Yes, when Labour win the next election (which they will do as there are so many middle Englanders refusing to vote as a protest) you can expect the biggest jump in tax levels ever seen.

Enjoy.

[Ruprect]

More speculation from the times on exactly how much vaseline you are going to need:

http://timesbusiness.typepad.com/mon...he-budget.html

1) A cut in higher rate pensions relief
2) An increase in pensions contributions for higher earners in the public sector.
3) The abolition of personal allowances for higher earners
4) An increase in employees' National Insurance contributions
5) A rise in VAT

My bet would be (4) and (5). Increasing NI is labours way of increasing income tax without breaking their election pledge to increase income tax. A55holes.

[expat]

More speculation from the times on exactly how much vaseline you are going to need:

http://timesbusiness.typepad.com/mon...he-budget.html



My bet would be (4) and (5). Increasing NI is labours way of increasing income tax without breaking their election pledge to increase income tax. A55holes.

And (1) for sure, cut in higher rate pensions relief. It plays well: "why should people who are already earning more, get more tax relief on their pension contributions?"

Certainly an increase in employees NICs with of course no upper limit; but also an increase in employers NICs. It's an invisible tax, too good to miss.

I'd guess also some tightening up in pension rules: too many people are playing with them. Immediate Vesting will probably go (that's where you are already old enough - 50 or 55 - but still working, so you pay in to a pension, get the 20% grossing-up, claim the othe 20% HRT relief on SA, and immediately take 25% of the fund tax-free, and an annuity for the rest. It's a good deal, too good a deal). Possibly the 25% tax-free will go: its name has already been changed in HMRC pages from "25% tax free" to "25% Pension Commencement Lump Sum" (spot the difference).

Personally I am thinking now that working less is worth full-rate tax relief whatever the chancellor does. If I don't earn it, he can't tax it (correct me if I'm wrong!). If I can't put income aside for retirement at 0% tax, I'll just have some of my retirement now, and work more later.

[Cyberman]

Just sent off my pension start confirmation for June, to my pension fund this morning. This HMG have destroyed any incentive I had to work by their high taxes and IR35 and I don't blame anybody else if they want to take their pension early. The only real worry for pensioners is the ridiculously regressive council tax and the high inflation that no doubt will be the result of HMG QE etc.

[FSM with Cheddar]

Just sent off my pension start confirmation for June

Please promise us you will also retire from CUK forums from June.

[DimPrawn]

Just sent off my pension start confirmation for June, to my pension fund this morning. This HMG have destroyed any incentive I had to work by their high taxes and IR35 and I don't blame anybody else if they want to take their pension early. The only real worry for pensioners is the ridiculously regressive council tax and the high inflation that no doubt will be the result of HMG QE etc.

But your house is rising in value so you are richer and richer under Labour no?

[Cyberman]

But your house is rising in value so you are richer and richer under Labour no?

No doubt it will once hyper-inflation kicks in !!

[Ruprect]

Here it comes....

Alistair Darling poised to slash spending and raise taxes in Budget