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  • Tax

    New tax also affects lower income tax bracket

    You are WRONG.

    With S24 and remaining a BRT I would end up with less net income.

    WRONG. You would only pay more tax if you started paying HRT.

    Just work out what my net income would be if below the HRT threshold even after including mortgage interest  to take total combined income to just below the HRT level.

    Give me you numbers then. I gave mine which prove that I would not pay any more.

    According to the calculator I end up paying double the current tax.

    Then once again you must be using the calculator wrongly. Though why use a calculator when it is such a simple sum.

    Assume a PA of 12k and 45k HRT threshold. Without S24 I earn 50-10-15=£25k before tax. I pay 20% on £13k=£2,600 and am left with £22,400.

    With full S24 my tax is calculated on 50-10=£40k and would be 20% of £28k = £5,600. But then I get tax relief on my interest = 20% of £15k = £3k. That reduces the total tax to £2,600 . To almost no one's surprise that is the same as before., and once again I am left with £22,400.

    It is simply a fact that by whatever means any BRT will have less net  income due to S24.

    This is what everyone is getting wrong.

    It is a simple fact that they are right and you are WRONG again.

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