Tax threshold

[Bill]

Hi
Just wonder what the Tax threshold is? I only work part-time and sure I
shouldn't be paying Tax - whilst I remember is this the same for somebody
who isn't married?
I have two kids under 16.

Bill

 

[Laura]

Hi
Just wonder what the Tax threshold is? I only work part-time and sure I
shouldn't be paying Tax - whilst I remember is this the same for somebody
who isn't married?
I have two kids under 16.

£4,615 per year. You are allowed to earn about £88 per week tax free. Same
for everyone married or not.

 

[Bill]

£4,615 per year. You are allowed to earn about £88 per week tax free. Same
for everyone married or not.

Is that all, I always thought it was £120 per week. Does his apply if your
wife dosen't work aswell? What about Tax credits for kids?

Bill

 

[Laura]

Is that all, I always thought it was £120 per week. Does his apply if your
wife dosen't work aswell? What about Tax credits for kids?

Yes this applies even if your wife doesn't work, crappy I know as I feel
that you should be able to transfer the tax allowance of the non working
partner to the working one. You can get Child tax credits and Working tax
credits if you work more than 16 hours a week. See here if you re eligible

https://www.taxcredits.inlandrevenue.gov.uk/Home.aspx

and put a claim in ASAP. It does get backdated for 3 months.

 

[Daisy]

You can get Child tax credits and Working tax
credits if you work more than 16 hours a week.

You can get child tax credit even if you don't work. You need to work 16
hours to get Working tax credit.

Jan

 

[Bill]

£4,615 per year. You are allowed to earn about £88 per week tax free. Same
for everyone married or not.

While I'm on here - can I just ask about this TAX thing? my sister
unfortunately had to give her job up to look after her kids because her
husband became ill (hubby claiming Incapacity Benefit/Income support) all in
all the family receive £180 a week this obviously brings her above the £88 a
week before paying TAX scenario so how does this work?

Bill

 

[Laura]

While I'm on here - can I just ask about this TAX thing? my sister
unfortunately had to give her job up to look after her kids because her
husband became ill (hubby claiming Incapacity Benefit/Income support) all in
all the family receive £180 a week this obviously brings her above the £88 a
week before paying TAX scenario so how does this work?

They arent earning the £180 a week, so they wont have to pay income tax on
it. Is that what you meant?

 

[Robbie]

From: "Bill" (e-mail address removed)

Date: 13/12/03 11:32 GMT Standard Time
Message-id: <[email protected]>




While I'm on here - can I just ask about this TAX thing? my sister
unfortunately had to give her job up to look after her kids because her
husband became ill (hubby claiming Incapacity Benefit/Income support) all in
all the family receive £180 a week this obviously brings her above the £88 a
week before paying TAX scenario so how does this work?

Bill

Does any of the £180 include Housing and/or Council Tax Benefits? If so, then
exclude them as they are not taxable income

Same with DLA - not taxable income

The remainder - Incapacity Benefit IS taxable income - your brother-in-law
should have received a letter at the commencement of his claim to notify him of
this.

Income Support is not taxable income.

Is Carers Allowance in payment to your sister - this is also taxable income.

We really need a breakdown of what makes up the £180 so we can work out what
constitutes taxable benefits and what doesn't.

Incidentally, taxable income benefits as Incap Ben and Carers Allowance will
each have a seperate tax allowance applied to them if the benefits are paid to
seperate people (ie hubby gets Incap Ben, wife gets Carers Allowance).

If the tax threshold is exceeded then that person will pay tax on their benefit
- as far as I understand it.

Robbie


To reply by e-mail REMOVE the obvious!

 

[Robbie]

From: "Laura" (e-mail address removed)

Date: 13/12/03 15:11 GMT Standard Time
Message-id: <[email protected]>




They arent earning the £180 a week, so they wont have to pay income tax on
it. Is that what you meant?

See my post - some benefits are income replacement benefits and are classed as
taxable income - eg SSP, Incapacity Benefit, Carers Allowance

Robbie



To reply by e-mail REMOVE the obvious!

 

[Zoe Brown]

sure all £88

They arent earning the £180 a week, so they wont have to pay income tax on
it. Is that what you meant?

you don't pay tax on benefits...

 

[Bill]

sure all £88

They arent earning the £180 a week, so they wont have to pay income tax on
it. Is that what you meant?

I mean their income is £180 a week so why don't they pay Tax on it. It
appears Tax can be avoided if you don't earn your money.

Bill

 

[Bill]

you don't pay tax on benefits...

Why? the income is above the £88 weekly allowed before Tax.

bill

 

[Bill]

Does any of the £180 include Housing and/or Council Tax Benefits? If so, then
exclude them as they are not taxable income

Same with DLA - not taxable income

The remainder - Incapacity Benefit IS taxable income - your brother-in-law
should have received a letter at the commencement of his claim to notify him of
this.

Income Support is not taxable income.

Is Carers Allowance in payment to your sister - this is also taxable income.

We really need a breakdown of what makes up the £180 so we can work out what
constitutes taxable benefits and what doesn't.

Incidentally, taxable income benefits as Incap Ben and Carers Allowance will
each have a seperate tax allowance applied to them if the benefits are paid to
seperate people (ie hubby gets Incap Ben, wife gets Carers Allowance).

If the tax threshold is exceeded then that person will pay tax on their benefit
- as far as I understand it.

Robbie


To reply by e-mail REMOVE the obvious!

It's interesting stuff this.

bill

 

[Zoe Brown]

Why? the income is above the £88 weekly allowed before Tax.

sorry - some benefits are. But mostly they are not. The money given to
people on benefits is the tax payers money - there would be no use in taxing
it.

 

[Zoe Brown]

I mean their income is £180 a week so why don't they pay Tax on it. It
appears Tax can be avoided if you don't earn your money.

What would be the point in giving a familiy £180 from the tax payers money
and then ask them to pay tax on it !???

 

[Zoe Brown]

I mean their income is £180 a week so why don't they pay Tax on it. It

appears Tax can be avoided if you don't earn your money.

paying for anything can be avoided if you don't earn your money !!!!

 

[Mike]

Does any of the £180 include Housing and/or Council Tax Benefits? If so, then
exclude them as they are not taxable income

Same with DLA - not taxable income

The remainder - Incapacity Benefit IS taxable income - your brother-in-law
should have received a letter at the commencement of his claim to notify him of
this.

Income Support is not taxable income.

Is Carers Allowance in payment to your sister - this is also taxable income.

We really need a breakdown of what makes up the £180 so we can work out what
constitutes taxable benefits and what doesn't.

Incidentally, taxable income benefits as Incap Ben and Carers Allowance will
each have a seperate tax allowance applied to them if the benefits are paid to
seperate people (ie hubby gets Incap Ben, wife gets Carers Allowance).

If the tax threshold is exceeded then that person will pay tax on their benefit
- as far as I understand it.

Robbie


To reply by e-mail REMOVE the obvious!

Taxable benefits aren't actually taxed, they do however use up your tax
allowance as opposed to non taxable benefits which don't.

i.e you have a tax all of £4,615, you receive £2000 JSA(C). you have £2615
left to reduce the tax you pay on the earnings for the rest of the year.
You receive £2000.00 IS you still have £4,615 left to reduce the tax you pay
on the earnings for the rest of the year. SSP is taxed by the employer in
exactly the same way as earnings but as it's below the weekly tax threshold
most people normaly get a tax refund each week whilst getting SSP only.
People signing on get P60s and P45s when they sign off as with someone
working.

Mike

 

[Bill]

tax
What would be the point in giving a familiy £180 from the tax payers money
and then ask them to pay tax on it !???

Got point one I'd overlooked wonder if my boss can put the money I earn
thats over £88 and say its Income Support.

Bill

 

[Graham Innocent]

What would be the point in giving a familiy £180 from the tax payers money

and then ask them to pay tax on it !???

Quite. Think of the money we could save if everybody else whose income
comes from the taxpayer (i.e. all public sector workers) didn't have
to be taxed on it. We could just lower their salaries (to the level of
their initial take-home pay, so they lose nothing) and declare public
sector jobs tax free.
Think of the amount of paperwork that could be scrapped.