AlanHo Posted January 2, 2006 Report Share Posted January 2, 2006 I got chatting to a single parent at a new year party who told me that she was a part time civil servant and was due to get a salary increase this coming February. The increase was enough to take her out of getting tax credits - but would be enough for her to still earn the same amount per week.Alternatively - she could take the salary increase and work one day less per week - thus retaining her tax credits and current average earnings.If this is true - there must be thousands of people in a similar position who can deliberately work less hours and still get the same money by getting tax credits they would not receive if they carried on working their "normal" hours.I don't pretend to understand it - but it seems to be a very screwy system to me and an unecessary burden on the taxpayer. Quote Link to comment Share on other sites More sharing options...
r4may Posted January 2, 2006 Report Share Posted January 2, 2006 The whole system of Tax and other government Credits and allowances is riddled with rules of this type of rigid break levels for calculations of Credits or allowances.What is really required is some sort of sliding adjustments to the cutoff points to encourage people to do as much as the can without being worse off and they more they help themselves the more they can gain.At present there are lots of cases like this in that you can be worse off if you help yourself too much by extra work or savings.There Must be a Better way of doing it. Quote Link to comment Share on other sites More sharing options...
deuces wild Posted January 2, 2006 Report Share Posted January 2, 2006 I believe in the flat tax with a resonable income set as a starting point when the taxes kick in. No 2,000 pages of exemptions, rules or regulations. No one is able to find loopholes to escape paying taxes. The more you earn, the more you pay. But everyone pays the same rate. Quote Link to comment Share on other sites More sharing options...
D4\/!d Posted January 2, 2006 Report Share Posted January 2, 2006 A guy I know, who is passionate about hardware - he loves building PCs. He makes 'em for the local school, and shows kids how to do it too.Yet he cannot work as much as he would like, coz too much earnings will prevent him from being entitled to an allowance to look after his disabled wife..!! Quote Link to comment Share on other sites More sharing options...
r4may Posted January 2, 2006 Report Share Posted January 2, 2006 A guy I know, who is passionate about hardware - he loves building PCs. He makes 'em for the local school, and shows kids how to do it too.Yet he cannot work as much as he would like, coz too much earnings will prevent him from being entitled to an allowance to look after his disabled wife..!!Thats the sort of Stupid restrictions that cause higher costs to the Taxpayer than necessary. The same thing happens in the pensions area. Quote Link to comment Share on other sites More sharing options...
catgate Posted January 2, 2006 Report Share Posted January 2, 2006 I got chatting to a single parent at a new year party who told me that she was a part time civil servant and was due to get a salary increase this coming February. The increase was enough to take her out of getting tax credits - but would be enough for her to still earn the same amount per week.Alternatively - she could take the salary increase and work one day less per week - thus retaining her tax credits and current average earnings.If this is true - there must be thousands of people in a similar position who can deliberately work less hours and still get the same money by getting tax credits they would not receive if they carried on working their "normal" hours.I don't pretend to understand it - but it seems to be a very screwy system to me and an unecessary burden on the taxpayer.Surely this should come under the same "gerrymandering" law that caused the Tesco woman (forgotten her name, dammit) to flee the country for selling off houses to gain votes. Quote Link to comment Share on other sites More sharing options...
ranger Posted January 2, 2006 Report Share Posted January 2, 2006 I remember not long after my mate took redundancy and went into a lower paid job to keep him working he started receiving housing benefit, this new job meant he had to do overtime every 3rd Saturday, extra money to help with bills etc. you would think, but no! the way the benefit system worked it cost him 50p every extra hours overtime he worked. Quote Link to comment Share on other sites More sharing options...
nellie2 Posted January 2, 2006 Report Share Posted January 2, 2006 What I would like to know is, how come your friend is getting a pay rise in Feb!! If we get one then it is July that it is supposed to be awarded but we are usually lucky if we get it by Christmas by the time the unions and the governement have finished arguing over it. Quote Link to comment Share on other sites More sharing options...
AlanHo Posted January 2, 2006 Author Report Share Posted January 2, 2006 What I would like to know is, how come your friend is getting a pay rise in Feb!!Dunno - just repeating what I recall. She was not a friend by the way - just a casual acquaintance at a party who talked in some detail about her situation. I have always had an unfortunate way with women - they cannot resist opening their hearts to me. Mind you - I had had a few glasses of champagne so could have got dates wrong.This does not alter the principle though - she is going to be able to work even less for the same money because of a crazy government sponsored system. Quote Link to comment Share on other sites More sharing options...
nellie2 Posted January 3, 2006 Report Share Posted January 3, 2006 I can't argue with you there! :( Quote Link to comment Share on other sites More sharing options...
andsome Posted January 3, 2006 Report Share Posted January 3, 2006 Is this lot all known as Browns Balls Ups? Quote Link to comment Share on other sites More sharing options...
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