Quote:
Originally Posted by katex
Certainly going to hit me Bernard. I know they are going to increase the personal allowance for income tax to £7,475 to soften the blow to the lower income earners. Saves them £170 .. but is overtaken by increase in VAT.
For me, as a pensioner over 65 .. the personal allowance is set at £9,450 anyway; this already covers no income tax being deducted from my state pension, however, now have small income and the 2.5% increase in VAT will certainly hit me and put lots of goods beyond my reach. 
At least no rise on me fags, alcohol and fuel.  |
Well, Kate, all these things will go up as a result of the increase in VAT......cigarettes by about 13pence a pack(or that is what the newspaper says).It would have been easy to cut the benefits bill by bringing in a rule which says that if a child isn't born and/or resident in this country, then child benefit is not payable. I am sure this would have met with the approval of most people....it would take very little to administer it either.
The VAT increase will hit everyone.......but that way no-one escapes.
I know that it will make a very little dent in those who earn lots of money, but there may be other things that will appear in the autumn budget that will sting the folk who have pots of money.