ewx | Budget 2007

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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.

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From:

truecatachresis.livejournal.com

The band changes don't come in until next year, but as of next month, there are working tax credits that benefit anyone earning up to £16,400 - by more than they will be losing out come the changes next year. My very rough BOE calculation came out at £15675 as break-even, which made the tax credit thing make even more sense, but this doesn't include NI. (Not sure where £18,600 comes from - I make it a change in 10% on the £2090, which equates to £10450 for the reduction of 2% to kick in - add £10450 to the allowance of £5225, and you get £15675. I've probably missed something obvious, though.)

From:

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.

From:

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)

From:

vyvyan.livejournal.com

as of next month, there are working tax credits that benefit anyone earning up to £16,400 - by more than they will be losing out come the changes next year

Doesn't help us - our joint income would get us almost to that figure (it's not worth bothering to claim a fiver of tax credit, really!) since AFAICS working tax credits are assessed for couples rather than individuals. We will, however, pay more than £300 more tax a year than before with these changes.