Budget 2018 – Smoke and Mirrors

I don’t normally “do” politics on this blog, but claims in Budget 2018 have irritated.  Particularly the assertion that someone warning £50,000 “will be £860 a year better off from next April.”

An analysis of the numbers shows that this is not even an exaggeration, it is simply a lie!

For the purpose of this analysis, I have assumed a salary of £50,000 – simply as this aligns with the increased Higher rate threshold.

Income Tax

At first glance, the numbers stack up…

Income Tax Changes for 2019/20
Rate 2018/19 2019/20 Delta
Band Tax Band Tax
Nil Rate 0% £11,850 £0.00 £12,500 £0.00 £0.00
Basic Rate 20% £34,000 £6,900.00 £37,500 £7,500.00 £600.00
Higher Rate 40% £3,650 £1,460.00 £0 £0.00 -£1,460.00
Total £50,000 £8,360.00 £50,000 £7,500.00 -£860.00

National Insurance

But hidden in the small-print of the budget was the (expected) statement that the NI Upper Earnings Limit would increase in line with the Higher Rate threshold; the lower thresholds are also increased…

National Insurance Changes for 2019/20
Rate 2018/19 2019/20 Delta
Band Tax Band Tax
Below PT 0% £8,434 £0.00 £8,632 £0.00 £0.00
Below UEL 12% £37,916 £4,549.92 £41,368 £4,549.92 £414.24
Above UEL 2% £3,650 £73.00 £0 £0.00 -£73.00
Total £50,000 £4,622.92 £50,000 £4,964.16 £341.24

NEST Pension

The changes to the National Insurance thresholds also affect the NEST pension  contributions… while this is optional, it is opt-out, and probably not a bad idea…

Together the NI and NEST changes swallow up half of the claimed saving.

NEST Pension Changes for 2019/20
Rate 2018/19 2019/20 Delta
Band Tax Band Tax
Below LEL 0.0% £6,032 £0.00 £6,136 £0.00 £0.00
Below UEL 2.5% £40,318 £1,007.95 £43,864 £1,096.60 £88.65
Above UEL 0.0% £3,650 £0.00 £0 £0.00 £0
Total £50,000 £1,007.95 £50,000 £1,096.60 £88.65

The Sting In The Tale

Unannounced in this Budget, not even in the small print – because it relates to implementation of a long-announced change – is that for 2019/20 the contribution rate for NEST increases from 3% (2.5% nett) to 5% (4.17% nett).

NEST Pension Changes for 2019/20
Rate 2018/19 2019/20 Delta
Band Rate Tax Band Rate Tax
Below LEL £6,032 0.0% £0.00 £6,136 0.0% £0.00 £0.00
Below UEL £40,318 2.50% £1,007.95 £43,864 4.17% £1,827.67 £731.07
Above UEL £3,650 0.0% £0.00 £0 0.0% £0.00 £0
Total £50,000 £1,007.95 £50,000 £1,827.67 £731.07

Summary

In conclusion, while the headline Income Tax saving of £860 is welcomed, all other things being equal, workers earning £50,000 will be worse off by £212 a year.

Summary of Changes for 2019/20
Tax Delta
Income Tax -£860.00
National Insurance £341.24
NEST Pension £731.07
Total £212.31

Recommendations

Other than providing an opportunity for stealth taxes, now that the contributory basis of NI is no longer relevant, there is no justification for maintaining separate employment income tax and NI. Rather than raining the basic rate threshold, future budgets should raise the NI lower earnings limit to harmonise it with the tax threshold – at which point, employment income tax and NI should be merged (with their current combined rates of 0%, 32%, 42% and 47%).

Pensions, interest and dividend income can retain their existing rates.

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10th International Annual ISO26262 Conference

ISO 26262 Conference logo

ISO 26262 Conference logo

I’m pleased to be confirmed as a Speaker at the 10th International Annual ISO26262 Conference, to be help in Stuttgart in October.

I will be speaking on “Use MISRA C:2012 as your language subset – write safe and secure application code”

This is a topic, especially in light of the imminent publication of the 2nd Edition of ISO26262, that needs reinforcing…

 

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ISO/IEC JTC1/SC7 Plenary 2018

ISO-IEC JTC1-SC7 2018 Plenary

Team Photo
ISO-IEC JTC1-SC7 2018 Plenary

I am pleased to have been invited to form part of the UK delegation to the ISO/IEC JTC1/SC7 2018 Plenary, held at the Indian Habitat Centre, in New Delhi, between 6th and 11th May.

As well as attending the Plenary sessions (to start and finish the week) I was an active participant in two Working Groups:

  • WG20 – Book of Knowledge & Professionalization
  • WG26 – Software Testing

A busy, but enjoyable week!

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MACH2018 – a review

Manufacturing in Motion Event 2018

Manufacturing in Motion 2018

Back in January, I announced that I had been invited to participate as part of the British Standards Institution led panel session “How robotics and automation are transforming manufacturing systems” at the Manufacturing In Motion (MACH 2018) event at Birmingham’s National Exhibition Centre.

The Panel

MACH2018 Agenda

MACH2018 Agenda

The panel consists of:

  • Dan Palmer – Moderator
  • Professor Stephen Cameron – Robot Ethics
  • Robert Garbett – Drones & UAS
  • Ruptesh Pattanayak – AI transforming manufacturing
  • plus me ….

Questions

A number of questions were asked – in light of the event, these were with a manufacturing slant

  • How do you think robots, drones, autonomous systems and AI will change the manufacturing industry in the future?
  • What do manufacturers need to do to take advantage? What are the challenges and how to overcome them?
  • What is the role of standards in supporting these technologies?
  • What will the impact be on jobs? What skills will employers need to recruit for?
  • How can we make systems secure?

Media

I even got headline billing in an article by Joseph Flaig for the IMechE… which was syndicated

My thanks to my fellow panelists for a good discussion, and my thanks especially to BSI for inviting me to be part of their session.

MACH 2018 BSI panel

MACH 2018 BSI panel
(photo: Joseph Flaig)

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So long, FNR… hello LDRA

On Friday 9th March, after nigh on six years, I bid farewell to Mychett Place and Frazer-Nash Research. I wish my former colleagues well for their future.

LDRA Logo

With effect of Monday 12th March, I have joined LDRA working out of their new Silchester office…

I’m looking forward to the new challenges.

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AndrewBanks goes HTTPS

Regular readers of this blog/website may have noticed that something has changed!  The site is now secure.

For some time I have been considering migrating this blog from HTTP to HTTPS… but expected making the change would be quite a hassle, and not worth the effort.

Thankfully, my hosting provider has helped, by providing an SSL certificate for the site… and the changes were quite straightforward.

The only area of difficulty was that the existing social media sharing widget did not work fully under HTTPS, so it has been replaced by a new plugin – the Social Media and Share Icons plugin (from Ultimate Social Media). This looks to be quite an improvement, so will have to play with the settings!

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MISRA C:2012 Addendum 2 and Addendum 3

While it is widely considered that MISRA C provides best practice guidelines for the development of safety-related systems, the publication of “C Secure” has generated discussion on the applicability of MISRA C for secure applications.

In response, the MISRA C Working Group are pleased to announce the publication of two Addenda to the MISRA C:2012 guidelines.

  • The 2nd edition of MISRA C:2012 Addendum 2 (Coverage of MISRA C:2012 against ISO/IEC TS 17961:2013 “C Secure”) updates the 1st edition to include coverage provided by Amendment 1 (Additional security guidelines for MISRA C:2012).
  • MISRA C:2012 Addendum 3 (Coverage of MISRA C:2012 against CERT C) provides an analysis of the overage provided by MISRA C:2012 (including Amendment 1) against the recommendations provided by CERT C

Together, these two documents demonstrate that MISRA C provides best practice guidelines for the development of secure applications, as well as the widely considered applicability of MISRA C for safety-related systems.

Future work within the MISRA C Working Group on the Standard Library for Hosted Applications, and to add the new features of C11 are underway, and will enhance the coverage of MISRA C in these areas.

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MACH 2018

Manufacturing in Motion Event 2018

Manufacturing in Motion 2018

I am pleased to announce that I will be Speaking as part of the British Standards Institution led panel session “How robotics and automation are transforming manufacturing systems” at the Manufacturing In Motion (MACH 2018) event at Birmingham’s National Exhibition Centre.

The panel consists of:

  • Professor Stephen Cameron (of Oxford University) – Robot Ethics
  • Robert Garbett (Chief Executive, Drone Major Group) – Drones & UAS
  • Ruptesh Pattanayak (Industry Solutions Executive, Microsoft) – AI transforming manufacturing
  • Dan Palmer (Head of Market Development, BSI) – Standards Development
  • plus me ….
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IET SSCS 2018

I knew that my presentation was being videoed for IET.TV – so here it is…

https://tv.theiet.org/EmbedPlayer.aspx?videoid=11347

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MISRA C:2012 Technical Corrigendum 1

Since the publication of MISRA C:2012 and its adoption by industry and the wider C community, a number of issues have arisen, both from discussions within the MISRA C Working Group and in response to feedback via the MISRA C Forum on this bulletin board.

In response to this, the MISRA C Working Group has published Technical Corrigendum 1 – this document provides clarification on these issues, and should be read in conjunction with the original MISRA C:2012 document.

TC1 can be freely downloaded from the MISRA Forum.

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