Soldato
Settle an argument about tax bands
- Thread starter glenimp617
- Start date
Soldato
Tell them to get a better job and find out for themselves.
In fairness our Government is not adverse to making stupid tax banding decisions like the person you're arguing with thinks income tax works - stamp duty used to work like this - but income tax is as you describe and has been as long as I can remember.
Soldato
As good a response as youre gonna get.
Tell them its 40p in the £1 that should blow his mind. 
By the way all earnings are taken into consideration when it comes to tax.
You earn £18k off one job and £25k off another and bang you on the 40% rate.
A lot of people off set the tax with costs, repairs, maintenance, travel costs etc to stay below the 40% threshold.
By the way all earnings are taken into consideration when it comes to tax.
You earn £18k off one job and £25k off another and bang you on the 40% rate.
A lot of people off set the tax with costs, repairs, maintenance, travel costs etc to stay below the 40% threshold.
Soldato
Man of Honour
That's a little unfair
For every £2 you earn over £100k you lose £1 from your personal allowance, therefore on reaching £122k the allowance is gone.
For some it does remove the motivation to progress further as the net result is negligible.
Deleted member 66701
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Deleted member 66701
Child care vouchers too. £42999 salary = first £243 per month sacrificed is tax/ni free saving you £77.76 per month. If you earn £43000, first £124 is tax free, only saving you £39.16 per month. So a £1 salary increase would leave you £454.08 per year worse off.
Nope we have several at our work who think the same thing and won;t do anymore overtime if its going to take them over te threshold and they will be taxed at 40%.............
Doesnt matter how many times I explain to them.
Associate
It never ceases to amaze me how out of touch some people are with this sort of stuff.
Man of Honour
You can't use evidence or reasoning to explain something to someone who has chosen a position that doesn't use evidence or reasoning and who deliberately refuses to consider evidence or reasoning.
So good luck finding a way to settle this argument. They can just keep saying "No it isn't" for ever.
So good luck finding a way to settle this argument. They can just keep saying "No it isn't" for ever.
Those people shouldn't be earning that much money...
Well, saying that, it's does mean that for those hours worked as overtime where you're taxed at 40% you're actually earning less as your hourly rate. But if they just actually don't understand the basics... bah!
That's a little unfair
The whole income tax system is "unfair".
Soldato
Lots of people think like your friend. The amount of people I heard say that a pay rise to 42k from say 39k is pointless because they have to pay 40℅ tax is unreal
Associate
Quote this a thousand times.