Why is tax so high ?

The 40% income tax rate is between about £32k - £150k for tax year 13/14
Above £150k it's 50% :)
 
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SDK^ said:
The 40% income tax rate is between about £32k - £150k for tax year 13/14
Above £150k it's 50% :)
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You paid 40% on your earnings over the threshold, not on everything - it's your marginal rate, not effective rate as I said. In most situations your tax divided by your income won't be at 40% or more until around £150k. Saying you paid 40% on it is just as valid as me saying you actually paid about 10% on it, as I believe you used your personal allowance plus some money taxed at 20%.
 
Yes but it's only for the money you earn above those figures. So if you earn £35k you're only paying 40% on £3k, therefore it's not actually a 40% tax rate unless you're earning over £150k
 
Sagalout said:
Yes but it's only for the money you earn above those figures. So if you earn £35k you're only paying 40% on £3k, therefore it's not actually a 40% tax rate unless you're earning over £150k
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If you earn £35k you probably aren't paying any HR tax, as you have a personal allowance. For the majority of people HR starts at around £41k.
 
Really, thanks for pointing that out. For years I thought I was getting taxed 40% on all my earnings :p

You misunderstood my post.
I was referring to being a higher rate tax payer.

This forum does like to complicate things.
 
SDK^ said:
Really, thanks for pointing that out. For years I thought I was getting taxed 40% on all my earnings :p

You misunderstood my post.
I was referring to being a higher rate tax payer.

This forum does like to complicate things.
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We know you were referring to being a higher rate tax payer - you seem to mention it in every post you make. Did you just get there or something? :p
 
Why worry about the tax you pay. Just look at what you take home as your wage is factored into market conditions. If you want to pay less tax go live in an Indian slum or something
 
Q: if google & the likes paid more tax, if people didn't cheat benefits system; would we have same % tax or lower?

I know the obvious question might be lower but I am not sure

Q: why is it that when I have paid the taxes on an item, i still need to pay another set of taxes if i sell it on ebay?
 
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Greebo said:
You must have loads of benefits in kind so your total "wage" is actaully way above £39k

http://www.listentotaxman.com/index.php

£26,617 is indeed the take home pay of a person on £35k assuming they have full personal allowances.

£39k gives you £29,337.76 take home pay.
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Yeah forgot about the BIK.

Working it out with the BIK what I get is pretty much about right, the benefits make up for the loss to be fair but would still like to see it in my pay packet :p
 
What legally stops you from setting up a company and buying stuff like your computer for the company and reclaiming the VAT? There's gotta be something or everyone would do it.
 
Where the government spends your money.

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Despite what the Daily Mail thinks benefits and interest are a long way from the biggest components of the budget.
 
Strife212 said:
What legally stops you from setting up a company and buying stuff like your computer for the company and reclaiming the VAT? There's gotta be something or everyone would do it.
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I think you need to make sufficient profit with the business to claim back the VAT. If the business is on nil per year (because it's doing f.a.), I believe you can claim back nil VAT. An interesting thought is how tax breaks for new businesses factor into this.

Oh, plus the company would own the computer, not you.
 
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