Stupid question about Tax bands...

Pudney · 23 Nov 2011 at 22:00

Vonhelmet said:

Thought you'd like it.

Of course, I didn't get into issues of married couples allowance, or varying personal allowances due to tax on benefits in kind recovered via your tax code, or increases due to gift aid or pension contributions, or any other myriad things that might affect your allowance.

Or if you're paid ridiculous amounts that I only wish I were paid.

jimjamuk · 23 Nov 2011 at 22:12

Vonhelmet said:
"Why" is because I could walk all up and down your ass with the amount of stuff I know about tax. I've probably scored half a mark in more than one exam for knowing that the personal tax system works on tiered bands. So don't come acting the genius because you know one little fact about tax.

Anyway.

I've had extremely clever people ask me this exact same question. Just because you know something doesn't make someone who doesn't know it stupid.

And I could kick your ass in IT networking - big deal Mr Accountant. But the original question effectively was whats the 40% rate band? how frikin hard is that and do i get taxed at 40% for all my income? how stupid would that be?

jimjamuk · 23 Nov 2011 at 22:24

if the OP had asked some interesting question about the vagueness of a particular tax situation then I would bow down to your judgement and expertise and would listen with interest

I just googled "what is the 40% tax band" - guess what result 1 told me

my gripe was that people just dont try anymore - they want the answers handed to them on a plate

mollymoo · 23 Nov 2011 at 22:24

jimjamuk said:
And I could kick your ass in IT networking - big deal Mr Accountant. But the original question effectively was whats the 40% rate band? how frikin hard is that and do i get taxed at 40% for all my income? how stupid would that be?

It would be very stupid, however not everyone understands the tax system even at its most basic level. I would hazard a guess that you don't know the simple basics of bookkeeping, or how to fit a set of brake shoes on a car, just because someone doesn't know something it doesn't make them simple.

Kemik · 23 Nov 2011 at 22:27

jimjamuk said:
And I could kick your ass in IT networking - big deal Mr Accountant. But the original question effectively was whats the 40% rate band? how frikin hard is that and do i get taxed at 40% for all my income? how stupid would that be?

Depends on his savings, any shares he has, a side job etc. I'd say a fair portion of the population, especially those on that salary bracket don't just have salary income. There will be other income sources, even if it's less than £1,000 a year.

OP: I say this with the biggest disclaimer ever, they don't do stuff which would put you at a disadvantage to work more so they only tax the marginal/additional amount at the higher rate. You might find this useful: http://forums.overclockers.co.uk/showthread.php?t=18278909

P.s. don't forget about NIC!

Vonhelmet · 23 Nov 2011 at 22:29

jimjamuk said:
And I could kick your ass in IT networking - big deal Mr Accountant.

The difference being that I'm not walking around calling people stupid because they don't know that they need to type in the WEP key from the back of the router, which is basically what you've done.

jimjamuk said:
But the original question effectively was whats the 40% rate band? how frikin hard is that and do i get taxed at 40% for all my income? how stupid would that be?

I don't know, you tell me. Maybe I could tell you about the time the government had so many taxes and surcharges on certain types of income that they were actually taxed at 102%? That sounds pretty ****** stupid as well, but it happened. Or how Gordon Brown thought it would be brilliant to get everyone to incorporate so he introduced a nil rate band of corporation tax and then lost loads of tax because everyone paid no CT and no IT on their dividend income. That was pretty stupid as well. Or maybe you'd like to hear about how if everyone managed to claim the tax credits to which they were entitled (improbable, given how ludicrously complex it is) then it could bankrupt the treasury. Great plan.

You knew one fact that someone else didn't and you acted like a tool about it. Well done.

Kemik · 23 Nov 2011 at 22:34

Vonhelmet said:
snip.

And breeeeeeeath haha

Hatter The Mad · 23 Nov 2011 at 22:41

Vonhelmet++

chippie · 23 Nov 2011 at 22:41

jimjamuk said:
if the OP had asked some interesting question about the vagueness of a particular tax situation then I would bow down to your judgement and expertise and would listen with interest

I just googled "what is the 40% tax band" - guess what result 1 told me

my gripe was that people just dont try anymore - they want the answers handed to them on a plate

The problem with googling, then posting the result is that most often people get it wrong.

This is the first tax thread in ages where no one has come along and posted what they think is the answer, only for them to be giving out completely wrong information. I could find a load of threads on here where people have posted stuff about tax and got it wrong.

I think that the people who know what they are talking about should be listned to, even if they are just confirming that something someone else posted is correct.

mollymoo · 23 Nov 2011 at 22:46

Vonhelmet said:
The difference being that I'm not walking around calling people stupid because they don't know that they need to type in the WEP key from the back of the router, which is basically what you've done.

I don't know, you tell me. Maybe I could tell you about the time the government had so many taxes and surcharges on certain types of income that they were actually taxed at 102%? That sounds pretty ****** stupid as well, but it happened. Or how Gordon Brown thought it would be brilliant to get everyone to incorporate so he introduced a nil rate band of corporation tax and then lost loads of tax because everyone paid no CT and no IT on their dividend income. That was pretty stupid as well. Or maybe you'd like to hear about how if everyone managed to claim the tax credits to which they were entitled (improbable, given how ludicrously complex it is) then it could bankrupt the treasury. Great plan.

You knew one fact that someone else didn't and you acted like a tool about it. Well done.

I'm going to assume your a tax accountant, just out of interest what qualification route did you take?

jimjamuk · 23 Nov 2011 at 22:46

Vonhelmet said:
The difference being that I'm not walking around calling people stupid because they don't know that they need to type in the WEP key from the back of the router, which is basically what you've done.

see comments like that demonstrate equally that you have no idea of the depth my subject matter as you have been trying to demonstrate to me with accounting.

tell you what rather than argue the toss all night - ill accept that I do not know all the ins and outs of the British tax system and that some people need a bit of hand holding and we'll call it a day

Pudney · 23 Nov 2011 at 22:49

jimjamuk said:
see comments like that demonstrate equally that you have no idea of the depth my subject matter as you have been trying to demonstrate to me with accounting.

tell you what rather than argue the toss all night - ill accept that I do not know all the ins and outs of the British tax system and that some people need a bit of hand holding and we'll call it a day

No, you misunderstand. The tax bands are incredibly basic to those who work within tax. Just like entering a WEP key would be to you.

Raymond Lin · 23 Nov 2011 at 22:50

^^^

For someone who is an expert in IT, but can't work the Quote button on a forum

Kemik · 23 Nov 2011 at 22:59

mollymoo said:
I'm going to assume your a tax accountant, just out of interest what qualification route did you take?

Think he done CTA with a Big Four.

Pudney is CTA if I remember right too.

I'm a CTA trainee (passed all of the exams, just waiting to pass the CA TPE exam in May so I get my A&I exemption hopefully!). Any questions, feel free to email.

mollymoo · 23 Nov 2011 at 23:01

Kemik said:
Think he done CTA with a Big Four.

Pudney is CTA if I remember right too.

I'm a CTA trainee (passed all of the exams, just waiting to pass the CA TPE exam in May so I get my A&I exemption hopefully!).

Isn't that like the Holy Grail of tax, where you have to be invited to study or have I got it mixed up with something else?

Kemik · 23 Nov 2011 at 23:03

mollymoo said:
Isn't that like the Holy Grail of tax, where you have to be invited to study or have I got it mixed up with something else?

It's meant to be one of the most difficult professional qualifications but anyone can give it a shot. Good luck if you do! It's hell on Earth

Pudney · 23 Nov 2011 at 23:03

Kemik said:
Pudney is CTA if I remember right too.

Actually I'm not. I just started off in a mid-tier firm doing AAT and audit and moved into corporation tax before that was finished. I just have lots of experience and a very sad enjoyment from tax.

Pudney · 23 Nov 2011 at 23:04

mollymoo said:
Isn't that like the Holy Grail of tax, where you have to be invited to study or have I got it mixed up with something else?

You need certain qualifications and experience before you can study.

Kemik · 23 Nov 2011 at 23:06

Pudney said:
Actually I'm not. I just started off in a mid-tier firm doing AAT and audit and moved into corporation tax before that was finished. I just have lots of experience and a very sad enjoyment from tax.

Oops, my bad sorry!

At least you got away from the dark side of audit

I don't get to do much tax technical work any more

Transfer Pricing is all just "it depends" and business methodology rather than technical.

Nitefly · 23 Nov 2011 at 23:10

paddy said:
Exactly. Having a tax system where just going £1 over a threshold means you pay the new band on the whole lot would be so stupid it would be almost unbelievable.

Wait... Stamp Duty... wussthatyousay?

"But M'lud! The extra £1 was for the chattels!"