Budget October 2024

[Malc1]

1 hour ago, Phil xxkr said:

first control food then the means of production then the people

sounds to me a bit like a Tesco mantra tbh

 

Malc

[Brian R]

2 hours ago, Boomer54 said:

I am feeling sympathy for small businesses. As usual they have come out the wrong side of policy. Clearly Reeves time at the BOE was wasted  as nobody bothered to tell her that the vast majority of the growth in jobs etc in the UK is directly attributable to ...wait for it....small businesses!! Yes, talk about cutting off your nose to decree your desire for growth and then opt to 'shoot' that terminally.

70 years in and I can say Labour are at least consistent. No surprises in the sense that private entrepreneurial initiative will always be taken behind the woodshed to pay for their social aspirations. What 'grits my s...t' is I doubt they have a Psychologist anywhere in their team to tell them how their good intentions are failing by delivering a poor outcome. This is just looking like one more iteration in a very long cycle of Labour failure and the biggest shame is many voters never seem to see it coming.

Precisely these points and if I am not mistaken, Reeves often cites her time within the B of E and by dint seems to infer she is an economist when in reality, and as I understand it, she was effectively engaged in some sort of support role! Don't take my word for this, and do your own research to confirm or indeed deny.

Regardless, It would seem she and her partners in crime cannot look further than the end of their noses. Politics remains rotten to the core and perhaps we should engage BBBC's Marianna Spring to fact-check Reeves, you know, the reporter who "lied on her cv" to get the job!

[Malc1]

1 minute ago, Brian R said:

Reeves often cites her time within the B of E

I'm sure Reeves did a great job at clearing-up a lot of stuff in her role at the BofE   🤣😂

Malc

 

[Phil xxkr]

2 minutes ago, Malc1 said:

I'm sure Reeves did a great job at clearing-up a lot of stuff in her role at the BofE   🤣😂

Malc

 

I thought janitorial duties had been outsourced? 😅

[PeterI]

3 hours ago, Brian R said:

Yes, same for me when 50% of my "wealth" is locked up in a pension fund, being as it is/was practically the only tax free environment to grow money. Not so now, and I would dearly love to "gift" MY money to others, but with the measly sums one can share it would be impossible to dispose sufficient to get anywhere near the 1 million threshold. To make matters worse, anything greater than the gift limit means you still need to live for another seven years or else the "gifted" pays tax and at a swinging diminishing 40% rate! BTW, I can now see why they want a cashless society........ I've already decided to spend, spend, and at a rate I couldn't even have contemplated when I earned (good) money!

I had been hoping to inherit what was left in a SIPP drawdown pension from my mother (my sister is in America so her getting half would have been more of a tax pain) thats now less attractive.

One option would appear to be gifting out of of normal income by drawing down out of the pension earlier (see link below), otherwise currently it looks like it's going to be 40% inheritance tax + what ever income tax you need to pay (probably 20% for most retirees) so an effective rate of 52% for lower rate tax payers. Probably something we should discuss in my mothers case with an IFA.

https://www.taxadvisermagazine.com/article/normal-expenditure-out-income-exemption

Personally I'm still throwing money into a pension due the tax advantages it gives but really the two idiots in charge did dig themselves into a hole by saying no tax rises for "working" people (however you choose to define this)

[Spock66]

The no increase in income tax statement is very disingenuous when allowances are frozen until 2028, that's a huge increase in income tax given the high rates of inflation we have had. 

[Phil xxkr]

9 minutes ago, PeterI said:

I had been hoping to inherit what was left in a SIPP drawdown pension from my mother (my sister is in America so her getting half would have been more of a tax pain) thats now less attractive.

One option would appear to be gifting out of of normal income by drawing down out of the pension earlier (see link below), otherwise currently it looks like it's going to be 40% inheritance tax + what ever income tax you need to pay (probably 20% for most retirees) so an effective rate of 52% for lower rate tax payers. Probably something we should discuss in my mothers case with an IFA.

https://www.taxadvisermagazine.com/article/normal-expenditure-out-income-exemption

Personally I'm still throwing money into a pension due the tax advantages it gives but really the two idiots in charge did dig themselves into a hole by saying no tax rises for "working" people (however you choose to define this)

Two things chaps, firstly, financial analysis is going on rest assured reccomendations will be forthcoming from very smart people. Secondly, this "Pol-Pot lite" regime has a finite life. Read Charriere's bio "Papillon" for the definition of a hard life but turns out right in the end. 😎

[GMB]

4 minutes ago, Spock66 said:

The no increase in income tax statement is very disingenuous when allowances are frozen until 2028, that's a huge increase in income tax given the high rates of inflation we have had.

Very true. One of the papers did an online calculator and we will be £100 worse off due to car taxes and the like, plus £60 extra income tax due to the threshold freeze. Not to mention the loss of WFA general inflation and insurance rises and council tax and cost of living and......so on.

[Phil xxkr]

5 minutes ago, Spock66 said:

The no increase in income tax statement is very disingenuous when allowances are frozen until 2028, that's a huge increase in income tax given the high rates of inflation we have had. 

As with no VAT increase? . By definition increasing inflation (as admitted) will increase the vat contribution on a lot of items. Yet another disingenuous statement. 

[Spock66]

10 minutes ago, GMB said:

plus £60 extra income tax due to the threshold freeze

I think it's way more that that, the personal allowance of £12,570 was set in 2021, using the Bank of England inflation calculator that would now equate to around £15,100 and by 2028 who knows what.  So the average basic rate tax payer will have lost out by several thousand pounds over that period.

[GMB]

4 minutes ago, Spock66 said:

I think it's way more that that, the personal allowance of £12,570 was set in 2021, using the Bank of England inflation calculator that would now equate to around £15,100 and by 2028 who knows what.  So the average basic rate tax payer will have lost out by several thousand pounds over that period.

Agreed. I was just going off the extra immediate hit, but if you do the projections it is certainly bad news for all of us.  I am honestly thinking of getting out of the country when you look at living/  heating/ taxation costs in Spain and some other European countries. Just avoid the flood zones  (Valencia) and dodgy areas of big cities where crime is rife ( like any country - see the riots in Poitiers, France!!! ). Madeira and some parts of Portugal might be nice?

[Boomer54]

1 hour ago, Spock66 said:

The no increase in income tax statement is very disingenuous when allowances are frozen until 2028, that's a huge increase in income tax given the high rates of inflation we have had. 

As usual it could just be semantics. Did they say "no increase in the income tax rate", or did they say "no increase in income tax". If the former they have not broken their pledge. If the latter then of course not a leg to stand on.

[Brian R]

1 hour ago, Phil xxkr said:

Two things chaps, firstly, financial analysis is going on rest assured reccomendations will be forthcoming from very smart people. Secondly, this "Pol-Pot lite" regime has a finite life. Read Charriere's bio "Papillon" for the definition of a hard life but turns out right in the end. 😎

This will almost certainly be the case and hence why I haven't (yet) made a knee-jerk reaction. It already seems and has been the case forever, a very neat and legal way to sidestep CGT and one I had already been considering for a few months.

The point is, a pension is a long term plan screwed up by what I sincerely hope will prove to be a very short term government. Of course a new incoming government could reverse the situation, but they certainly didn't when Gordon Brown robbed pensions pots!

[Boomer54]

1 hour ago, PeterI said:

I had been hoping to inherit what was left in a SIPP drawdown pension from my mother (my sister is in America so her getting half would have been more of a tax pain) thats now less attractive.

One option would appear to be gifting out of of normal income by drawing down out of the pension earlier (see link below), otherwise currently it looks like it's going to be 40% inheritance tax + what ever income tax you need to pay (probably 20% for most retirees) so an effective rate of 52% for lower rate tax payers. Probably something we should discuss in my mothers case with an IFA.

https://www.taxadvisermagazine.com/article/normal-expenditure-out-income-exemption

Personally I'm still throwing money into a pension due the tax advantages it gives but really the two idiots in charge did dig themselves into a hole by saying no tax rises for "working" people (however you choose to define this)

So much depends on individual circumstances. If your mother has excess income/liquid funds and if distributing them now brings her estate down below the threshold then Sipp may stiil be unaffected. Then of course it becomes a matter of her health etc. Can she live long enough for the gifts to drop out of inheritance tax. That's where the 7 year rule and sliding scale come into it. Worth investigating more.

[Brian R]

8 minutes ago, Boomer54 said:

So much depends on individual circumstances. If your mother has excess income/liquid funds and if distributing them now brings here estate down below the threshold then Sipp may stiil be unaffected. Then of course it becomes a matter of her health etc. Can she live long enough for the gifts to drop out of inheritance tax. That's where the 7 year rule and sliding scale come into it. Worth investigating more.

Exactly so but I would also add anyone can gift as much as they like and over seven years the IHT burden reduces and eventually to zero The point to bear in mind is that say the gifter lived for 3 years you as the receiver of that gift would be liable to a 32% tax burden rather than 40%. The more years the gifter lives, the less the tax burden will be on the receiver.

[PeterI]

15 minutes ago, Boomer54 said:

So much depends on individual circumstances. If your mother has excess income/liquid funds and if distributing them now brings her estate down below the threshold then Sipp may stiil be unaffected. Then of course it becomes a matter of her health etc. Can she live long enough for the gifts to drop out of inheritance tax. That's where the 7 year rule and sliding scale come into it. Worth investigating more.

Yeah, we have an IFA who we're probably going to work with but it's going to take a while before he can give sensible advice, we already doing some gifting and I'm hoping not to get caught by the seven year rule (sadly in my fathers case we were caught for chunk for trust related reasons)

Currently IHT is an issue, which at least is a "better class of problem" as ex co-worker used to say.
It could be finding funds for day to day living instead.

[Spock66]

27 minutes ago, Boomer54 said:

Did they say "no increase in the income tax rate", or did they say "no increase in income tax". If the former they have not broken their pledge. If the latter then of course not a leg to stand on.

I believe it was no increase in income tax, but the point I made re the freezing of personal allowances for a prolonged period of course applies to both the previous and current governments.

[Brian R]

2 minutes ago, PeterI said:

Yeah, we have an IFA who we're probably going to work with but it's going to take a while before he can give sensible advice, we already doing some gifting and I'm hoping not to get caught by the seven year rule (sadly in my fathers case we were caught for chunk for trust related reasons)

Currently IHT is an issue, which at least is a "better class of problem" as ex co-worker used to say.
It could be finding funds for day to day living instead.

I did wonder whether to say trusts can solve but also create problems, which clearly you sadly found in your father's case. 

An IFA needs to be chosen carefully but could be worth their weight in gold. Do also remember you've (currently) got till April 2027 to get the SIPP sorted before the new rule kicks in and most importantly, your mothers age and whether she is 75 or over.

[Malc1]

It’s early days yet with all this . Well unless one drops dead or gets in the way of a bus steaming down the road …….. so just Chill everyone Relax and have another cuppa ……. Pop some ££££££ into a flight to some delightful place to sojourn for a while …… before the APD increase hits anyway next April 

Lower your Blood Pressures and Chill 

Malc 

[Boomer54]

28 minutes ago, Spock66 said:

I believe it was no increase in income tax, but the point I made re the freezing of personal allowances for a prolonged period of course applies to both the previous and current governments.

Let's be frank semantics or not they really do play us as though they must think we are fools.

[Malc1]

10 minutes ago, Boomer54 said:

Let's be frank semantics or not they really do play us as though they must think we are fools.

They lied and cheated and simply fooled enough Voters to give them some rope to do their darndest ……. let’s hope the rope gets some more productive use quite soon and these Clowns get pushed aside for more rational sensible Governance and Government 

Malc 

[Linas.P]

4 hours ago, Tickedon said:

I guess you missed all the BIK changes - huge increases for EVs and also PHEVs in future years:

As always, need to dive into the budget detail to see what’s really going on.

Why do you think I have missed anything... maybe BIK is just irrelevant? 

Why it is irrelevant, because to get company car for many years now it had to be either absolute micro shaitebox diesel like with like 0.8L engine, or BEV/PHEV, even PHEVs lately struggled to comply. First column is Co2/km - it only applies to cars that does 50g or less, there is no car I would EVER be interested in which does 50g Co2/km (I guess maybe BMW i8). So how is this relevant to me or arguably anyone?

Basically, company car schemes are dead and were dying since 2017 at very least. It was long clear that government does not want people to save tax this way and that little "loophole" was closed, it wasn't huge loophole, but government just doesn't want people to drive, like AT ALL and giving tax discounts on buying cars just gave mixed messaging. This is not even labour thing, for at least 7 years now tories were making it impossible to get company car (or at least have a choice of something decent).

Company car schemes were on the way out and in grand scheme of things nothing changed, they are less and less relevant and now it is even less relevant. Also it is not surprising at all, considering that labour was always anti-personal transport... what is however surprising that tories never cared about it either. 

Also realities in workplaces have changed, so welcome to 21st century... new employees no longer care about company cars, young people generally do not care about driving and don't drive... and that is because for years it was impossible for young drivers to get insurance etc. As such company cars long lost appeal as a staff retention policy (which is all it is - staff retention tool). So I would not be surprised if they are gone in next 5 years altogether. As such it could be argued that this change is in line with culture and expectations. Only few boomers who still have company cars will notice, 80% of society would not knows the difference.

And you know I have already said - I am not buying any car past 2023, at least until there are hacks to disable or completely remove ISA. So it is simply irrelevant for me. 

[GMB]

1 hour ago, PeterI said:

we already doing some gifting

I can send you my account number and sort code if you wish.

57 minutes ago, Boomer54 said:

Let's be frank semantics or not they really do play us as though they must think we are fools

They really do think we are stupid enough to swallow their BS and they are probably right because we do nowt about it.  BTW

 

1 hour ago, Boomer54 said:

As usual it could just be semantics. Did they say "no increase in the income tax rate", or did they say "no increase in income tax". If the former they have not broken their pledge. If the latter then of course not a leg to stand on.

I have it recorded they actually said there will not be no increase and we will not be nicking no more money from you

[Malc1]

My accountants have advised I need to pay my Corporation Tax by the end of this month, November ……… if I pay right now might that take pressure from the Treasury and this Government 🤔

Malc 

😂🤣💥👍

[Phil xxkr]

1 hour ago, Malc1 said:

My accountants have advised I need to pay my Corporation Tax by the end of this month, November ……… if I pay right now might that take pressure from the Treasury and this Government 🤔

Malc 

😂🤣💥👍

Unless your alter ego is Alex Gerko probably not 😅