Lincolnshire Voice

Taken from the HM Revenue & Customs Employer Bulletin, February 09 Issue 31:

Future Changes to Tax and National Insurance
The chancellor has announced a number of future intended changes which include the following:

From 2010-11
- The basic personal allowance will be reduced in two stages for people with gross incomes above £100,000 and £140,000.

From 2011-12
- There will be a new higher income tax rate of 45% which will apply to people with taxable non-savings and savings income above £150,000.
- There will be a new income tax rate of 37.5% for dividend income taxable above £150,000.
- The National Insurance Contributions (NIC's) primary threshold will be broadly aligned with the income tax basic personal allowance.
- The main rate of Class 1 NIC's will be increased by 0.5% to 11.5%
- The Class 1 employer rate of NIC's will be increased by 0.5% to 13.3%. The increased rate will also apply to Class 1A and 1B contributions.
- The additional rate of Class 1 will be increased by 0.5% to 1.5%.

So there you have it. We can pay billions to bail banks out, whilst directors still get huge bonuses. They cut VAT from 17.5 to 15% to supposedly help businesses, but then increase the employers tax. For any employee that does not know, your employer has to currently pay 12.8% tax on top of your wages, which is going to increase to 13.3%.

Probably the one that will affect most people is the National Insurance rising to 11.5%. We recall that when it went up 1% to 11% it was sold to the public that it would help the NHS. Old gang parties are all the same TAX TAX TAX. You get what you vote for.

As an aside, have you seen the value of the Pound dropping over the last year or so in relation to the Euro. Now we have quantitative easing (printing money in english) this will affect the value of the pound further. Is "their" plan coming together nicely?