For me personally it puts me in the higher rate bracket, which I can negate right now by upping my pension contributions but it will get to a point with future pay rises where I’m essentially just shoving more and more away to keep me under 50k.
I’ve already stopped doing any overtime and I’m looking at dropping a day a week to keep me under because there’s no incentive when I’m losing 40% of any extra. I’d rather not have it at all than lose such a proportion. It’s hardly conducive to encouraging people to get on and be more productive.
I’m sure you know, national insurance drops by 10% at the £50,270 point. So it’s not as much of a cut off as you make out.
32% combined up to £50k and 42% above.
Of course but its the tax bill that kicks you. For instance my lad starts to lose his child benefit once in the 40% bracket.
The bottom line is that it’s still punitive any many “allowances” have failed to reflect inflation resulting in the biggest personal tax burdens for generations. I woukdnt mind it if it dudnt get wasted so frivolously by things such as allowing MPs to claim for their Christmas parties ffs
Daani:
Lol im used to dubai. Takes a little getting used to the tax system here
Many of the systems…
In Dubai are different to ours. The complete ignorance of safety rules for workers. The freely available alcohol but, only in the more exclusive hotels and restaurants. The blatant racism. The misogynist attitude towards women. The wasting of four million gallons of water every day keeping the greens looking lush on the members only golf courses.
Oh, I nearly forgot, the slavery and exploitation of thousands of foreign workers.
Conor:
So exactly the same as it is right now and you weren’t complaining the last 7 months. I’m trying to see where the problem is. It’s still over £4000 higher than it should be had the personal allowance risen at the normal rate it used to up to 2010. When Labour came into power the personal allowance was £4045 and when their 13 years in power ended it was £6475, a rise of just £2430 over 13 years. Over the last 12 years of the Tories it’s risen from £6475 to £12,700, a rise of £6,225 which is over two and a half times more than Labour the supposed party of the working man did.
Oh and by the way your numbers are wrong. The 45% applies from £125,000 not £150,000.
Daani:
Time to sit on benfits i think.
What a great idea. Go from several hundred quid a week to £75 just because there’s been no rise in the personal allowance this year so you’d be paying an extra £100 or so tax compared to if there had been. I’m guessing you are usually skint by next pay day.
Raising the bottom rate at which you pay tax doesn’t help “the working man” - it helps the rich far, far more. That’s why the tories are keen on it - if you don’t understand how it works then it looks like they are helping the poor. Smoke and mirrors.
“The reality is that a personal allowance increase to £12,500 would give £18 a year to households in the bottom 10% and £203 to households in the top 10%”
Carryfast:
The Tories are all about minimising income tax for the highest earners by putting the highest burden on the lower bands and regressive purchase taxes and council tax.
Labour’s ideas are even worse.
LOL. The top 1% pay 28% of all income tax received by HMRC, the top 10% pay over half of all income tax received by HMRC, the bottom 50% pay just 10% of all income tax received.
LOL. That’s because the rich take all the money and leave everyone else in the doo-dah. Simples.
I think the average payrise for bosses this year was about 37%. (Thats in a recession). What did you get?
Back in the 70s the average boss earned maybe 4-5 times more than his employees - now it’s 10-20 times more. Are bosses really performing ten times better than they were back in the 70s? Of course they arnt - wealth has been systematically taken from the poor and given to the rich for the last 40 years. Paying a bit more tax is the least of their worries. Pay me 3 million a year and you can tax me all you like - I’ll pay an accountant to get round it anyway.
In the 60s pop stars (some ) moaned about paying 19 shillings in the pound income tax before decimalization but they could still afford to drive rolls cars into swimming pools and chuck tellys out of hotel windows
Conor:
LOL. The top 1% pay 28% of all income tax received by HMRC,
Lets not feel too bad for that top 1% though eh ?
Amount needed to earn to qualify as top 1% in UK £688,228
How much wealth do the top 1% earn per year 21% of total UK wealth
So they take home 21% of the UK PLC take home and pay 28% of all tax…That doesn’t take into account creative accounting nor criminality. Nor does it address Corp tax avoidance and dividend tax used as take home lol.
1% of workers take home 21% of total pay…
Isn’t it fantastic the way you can present the exact same stats and show a very different message.
Or to put it another way 100k pa is 500% more than 20k pa.
In addition to VAT and fuel duty and council tax which all take no account of income and like property tax means taxing earned income twice and in a regressive way.
The tax system is done differently here, An allowance for all the people in the family. So, a part for both parents, a part for the first two children and half an allowance for any other children.
The main difference is that social charges are much higher. Around 700 euros a month deduction but no tax payable.
20% on annual earnings above the PAYE tax threshold and up to £37,700
40% on annual earnings from £37,701 to £150,000
45% on annual earnings above £150,000
Band Taxable income Tax rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
Additional rate over £150,000 45%
So the first £12.570 is tax free ? Anything over is taxed at 20%
If so why do I pay tax every week I’m sure I pay %20 every week ?
Suley would make sense to just allow people to work tax free untill they hit the £12,570 then start paying tax would be a simpler system in my eyes.
Instead of HMRC working out roughly what your earn a year and taking it accordingly.
Just let people work earn there tax free limit then start taking there slice
edd1974:
So the first £12.570 is tax free? Anything over is taxed at 20%
If so why do I pay tax every week I’m sure I pay %20 every week?
Surely would make sense to just allow people to work tax free until they hit the £12,570 then start paying tax would be a simpler system in my eyes.
Instead of HMRC working out roughly what your earn a year and taking it accordingly.
Just let people work earn there tax free limit then start taking there slice
The payroll system aims to help drivers take home the same amount of money each week over the course of the tax year. Not have a big weekly wage at the start of the tax year, and then a small weekly wage at the end of the tax year.
Imagine if a driver took home £500/week for the first six months of the tax year and then only £250/week for the rest of the tax year because his personal tax free allowance had been used up in the first six months. He might not be a happy bunny, and more to the point might not be able to pay his rent on only £250/week.
More tax equals being more ■■■■■■ off?
Less tax equals happier?
The happiest countries: #1 Finland.
And other Nordic countries score highly for happiness.
Highest personal taxed countries: #2 Finland.
Denmark and Sweden are up there too.
And they have high purchase taxes.
I`m sure that higher taxes will ■■■■ us off straight away, but if it meant better hospitals, schools, no queuing a for a Dr, better roads, better policing and so less crime…
Of course the richest politicians, representing the richest in society, who have the most to gain from tax cuts, might say that the few extra quid most workers get from income tax cuts will make you smile more.
I doubt it. I don`t think most of us are really so short sighted.
Franglais:
More tax equals being more ■■■■■■ off?
Less tax equals happier?
The happiest countries: #1 Finland.
And other Nordic countries score highly for happiness.
Highest personal taxed countries: #2 Finland.
Denmark and Sweden are up there too.
And they have high purchase taxes.
I`m sure that higher taxes will ■■■■ us off straight away, but if it meant better hospitals, schools, no queuing a for a Dr, better roads, better policing and so less crime…
Of course the richest politicians, representing the richest in society, who have the most to gain from tax cuts, might say that the few extra quid most workers get from income tax cuts will make you smile more.
I doubt it. I don`t think most of us are really so short sighted.
Much less density of population so not necessarily down to paying hight taxes. Those countries are (until recently anyway) much less multicultural so more of the population share the same values and beliefs which will also add to the happiness score.
