Budget 2007

[ewx]

[Poll #951035]

My back-of-the-envelope calculation suggests that the break-even point is around £18,600: you win by about 2p on every pound you earn above that, and lose below it.

There are benefits changes at the bottom end which presumably ameliorate the doubling of 10% rate to some extent (e.g. working tax credit) but I'm afraid I don't know how those benefits work, so if you're affected by those you'll have to work it out yourself.

Comments

[ewx.livejournal.com]

£18,605 is based on the 2007/08 figures (personal allowance £5225, 10% on the next £2230).
£18,605 = £5,225 + £13,380 = £5,225 + £2,230 + £11,150 and 0.2 * £13,380 = £2,676 = 0.1*£2,230+0.22*£11,150.

Also ignores NI; if there's a change to NI below the current UEL then I missed it.

[truecatachresis.livejournal.com]

Oops, yeah, I forgot to add the £2k from the 10% band back in again...

(I also used the 2006 10% band, but that's minor)