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Budget 2007 Tax Changes

 
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Matti Lamprhey
Guest
PostPosted: Wed May 21, 2008 7:30 pm    Post subject: Budget 2007 Tax Changes Reply with quote
The IFS has a press release issued today analysing the short- and
long-term effects of the recent tax changes, and this includes the
following section:

"The 0.9 million families who are still worse off overall this year
as a result of the reforms in Budget 2007 and subsequently include:

. 500,000 childless single adults under 25 (almost all living in a
household with other adults);

. 140,000 childless couples where at least one is aged 25 to 55;

. 115,000 childless single adults aged 25 to 55.

"The losing families have an average income after taxes and benefits
of £11,800. More than two-thirds are in the poorest third of the
population. These families lose around £83 a year on average, with
the poorer among them losing a larger proportion of their income
than the richer ones."

Can someone explain why the upper age of 55 is significant?

Matti
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Andy Pandy
Guest
PostPosted: Thu May 22, 2008 2:51 pm    Post subject: Re: Budget 2007 Tax Changes Reply with quote
"Matti Lamprhey" <matti@official-totally-reversed.com> wrote in
message news:69iq16F32ga07U1@mid.individual.net...
Quote:
The IFS has a press release issued today analysing the short- and
long-term effects of the recent tax changes, and this includes the
following section:

"The 0.9 million families who are still worse off overall this
year
as a result of the reforms in Budget 2007 and subsequently
include:

. 500,000 childless single adults under 25 (almost all living in
a
household with other adults);

. 140,000 childless couples where at least one is aged 25 to 55;

. 115,000 childless single adults aged 25 to 55.

"The losing families have an average income after taxes and
benefits
of £11,800. More than two-thirds are in the poorest third of the
population. These families lose around £83 a year on average,
with
the poorer among them losing a larger proportion of their income
than the richer ones."

Can someone explain why the upper age of 55 is significant?

It isn't. I'm pretty sure turning 55 makes no difference to any aspect
of taxation, NI, tax credits or benefits. Unlike 18, 25, 60, 65, 75.

It's probably just how the IFS chose to present their data.

--
Andy
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Matti Lamprhey
Guest
PostPosted: Thu May 22, 2008 9:23 pm    Post subject: Re: Budget 2007 Tax Changes Reply with quote
"Andy Pandy" <spam8times@wonderful.spam.invalid> wrote...
Quote:
"Matti Lamprhey" <matti@official-totally-reversed.com> wrote...
The IFS has a press release issued today analysing the short- and
long-term effects of the recent tax changes, and this includes the
following section:

"The 0.9 million families who are still worse off overall this
year as a result of the reforms in Budget 2007 and subsequently
include:

. 500,000 childless single adults under 25 (almost all living in
a household with other adults);

. 140,000 childless couples where at least one is aged 25 to 55;

. 115,000 childless single adults aged 25 to 55."
[...]

Can someone explain why the upper age of 55 is significant?

It isn't. I'm pretty sure turning 55 makes no difference to any aspect
of taxation, NI, tax credits or benefits. Unlike 18, 25, 60, 65, 75.

It's probably just how the IFS chose to present their data.

I've had this response from the IFS:

"Some of the press had drawn attention to the fact that the abolition
of the 10p tax band hurt "early retirees" (people who had retired
before the state pension age).

As a very imperfect measure of this, we decided to analyse the impact
of 10p separately on adults above and below 55.

I concede this is rather arbitrary."

Matti
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