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icowden

Legendary Member
It does argue that there is merit in assessing tax on household income rather than individuals.
It's hard to see what that merit is though (other than taking more tax and making the household poorer).
Once the kids are 18 do they become part of household income?

Example:
Husband earns £60,000, wife earns £30,000. At present they both get £12,750 tax free. Husband pays 20% on £37,250, wife pays 20% on £17,250. Husband pays 40% on £10,000. Total tax burden; 14,900

Under household rules, tax free stays the same, then 14,500 at 20% then 50,000 at 40%. Tax is now £22,900. Son an increase in tax of over £8,000.

That's quite a big chunk (unless my maths is faulty).
 

Mr Celine

Well-Known Member
It's hard to see what that merit is though (other than taking more tax and making the household poorer).
Once the kids are 18 do they become part of household income?

Example:
Husband earns £60,000, wife earns £30,000. At present they both get £12,750 tax free. Husband pays 20% on £37,250, wife pays 20% on £17,250. Husband pays 40% on £10,000. Total tax burden; 14,900

Under household rules, tax free stays the same, then 14,500 at 20% then 50,000 at 40%. Tax is now £22,900. Son an increase in tax of over £8,000.

That's quite a big chunk (unless my maths is faulty).

In a former life I used to do 'living together as husband and wife' visits for the DSS.
Two people living under the same roof are not necessarily sharing a household even if they are married to each other.

I suspect the administrative cost of trying to tax households rather than individuals would exceed any increased tax take.
 
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