The new Tax changes

lil eva · Posted: Tue Apr 08, 2008 9:51 am Post subject: The new Tax changes

If you work part-time or are on a low wage
Due to the fact that the former 10% starting rate of income tax has been scrapped, anyone earning less than £10,000 will now pay an extra £100 a year in income tax and National Insurance. However, in theory you should be able to recoup most, if not all of this, through means-tested benefits such as the working tax credit and child tax credits.

If you're a higher rate taxpayer
The fact that the basic rate has come down 2% to 20% is good news for you. However any joy you may feel at this will be tempered by the fact that the main National Insurance rate of 11% is now being levied on a bigger chunk of your income - up to £40,040 a year. So all in all, not good news for you.

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Chrissy Canadian · Posted: Tue Apr 08, 2008 1:38 pm Post subject:

that sucks...

i recently received my T4 slip (which in Canada is the yearly statement you get from your employer which sets out your income and income tax deducted for the year, and you use that to complete your income taxes) and i see that i paid just over $16,000 (8,000 pounds) in income tax last year!!! grrrrrrrrrrrr

will_lufc · Posted: Tue Apr 08, 2008 4:18 pm Post subject:

what sort of wage do you get

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Chrissy Canadian · Posted: Tue Apr 08, 2008 4:35 pm Post subject:

last year it was $75,000, but as you can see a huge chunk is taken by taxes

so i guess that's like 22% or something...

Chrissy Canadian · Posted: Tue Apr 08, 2008 4:37 pm Post subject:

and on top of that we also pay into canada pension plan (old age security) and unemployment insurance, which are both mandatory

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