2022 mini-budget discussion

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fez said:
What is she doing with her hands?

And can someone explain to me the complications involved in taxing people at 45% on part of their income. It obviously becomes a horrendously complex system when you add that final 45% rate in I just can't quite get my smooth brain around why.
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It's not too difficult.

Any income you earn over your personal allowance (normally £12,570) up to £50,270 is taxed at 20%
Any income you earn over £50,270 up to £150,000 is taxed at 40%
Any income you earn over £150,000 is taxed at 45%.

And it's only income in those bands that get taxed at those rates. So say your salary is £50,000, anything above your personal allowance is taxed at 20%, so you'd pay 20% on £37,430. If you then get a pay increase to £52k, only earnings above £50,270 is taxed at 40%, so only £1,730 of your income is taxed at 40%, the rest is still taxed at 20%.

It's a common misconception that if you get a pay rise into the higher tax bands you actually get a pay decrease, but you don't; you just take less of the increase home.
 
Rilot said:
Let's see how the markets react this morning. The markets love uncertainty.

Fair play to them for scrapping it though. I'll give them that.
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£ hasn't really reacted much, there is still so much uncertainty.

The s&P500 has been obliterated over the last week.
 
Uncertainty not helped by the PM and chancellor seemingly not talking to each other and just doing their own thing, it was bad enough when there was infighting within the Conservative party but now it seems that's spread to the cabinet.
 
Nitefly said:
“This is definitely the right decision and we’re sticking with it for the good of the country.

“We’ve reversed the decision because it was a distraction.”

:confused:
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I think the meaning is:

"We're hoping to shift all attention to this one point we're changing so we can get away with the rest of it without the criticism it deserves and has had".
 
squerble said:
It's not too difficult.

Any income you earn over your personal allowance (normally £12,570) up to £50,270 is taxed at 20%
Any income you earn over £50,270 up to £150,000 is taxed at 40%
Any income you earn over £150,000 is taxed at 45%.

And it's only income in those bands that get taxed at those rates. So say your salary is £50,000, anything above your personal allowance is taxed at 20%, so you'd pay 20% on £37,430. If you then get a pay increase to £52k, only earnings above £50,270 is taxed at 40%, so only £1,730 of your income is taxed at 40%, the rest is still taxed at 20%.

It's a common misconception that if you get a pay rise into the higher tax bands you actually get a pay decrease, but you don't; you just take less of the increase home.
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I was being facetious. The tax system at its core is fantastically simple to understand and the only way that people are usually "poorer" if they get paid more is when their pension contribution suddenly goes up after they hit a given band. Thats a company thing, not a tax thing though.

Anyone who thinks they will actually get paid less for going into the next tax bracket is an idiot.

I was basically asking if there is something I am missing that makes the 45% tax bracket hard to manage from the tax mans point of view because I am pretty sure its the same as all the other brackets from their point of view.
 
Screeeech said:
So surely, the chancellor has absolute zero credibility now.

You can’t make a balls-up like this, in a job like that and just “carry on truckin”

He has to go, surely!?
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Any chancellor in history before 2019 would have walked for this but we now live in a world where politicians just true to ride it out for as long as possible, he won't walk he will need a shove even though he must now be a laughing stock.
 
squerble said:
It's not too difficult.

Any income you earn over your personal allowance (normally £12,570) up to £50,270 is taxed at 20%
Any income you earn over £50,270 up to £150,000 is taxed at 40%
Any income you earn over £150,000 is taxed at 45%.

And it's only income in those bands that get taxed at those rates. So say your salary is £50,000, anything above your personal allowance is taxed at 20%, so you'd pay 20% on £37,430. If you then get a pay increase to £52k, only earnings above £50,270 is taxed at 40%, so only £1,730 of your income is taxed at 40%, the rest is still taxed at 20%.

It's a common misconception that if you get a pay rise into the higher tax bands you actually get a pay decrease, but you don't; you just take less of the increase home.
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This is set it stone for years but a few years ago, the tax band of 40% started around the 70k mark and the allowance was from 12k, it is actually only 2.5k ish now that is free from tax
 
And there's the kicker - £18bn of cuts to public services.

They gave us austerity 1.0 which was largely ideological, then they gave us Brexit - which was entirely ideological and now austerity 2.0 because we're so ****** and they want to milk the gravy train one last time.

Edit - apologies, I jumped the gun, not formally announced.
 
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Nitefly said:
“This is definitely the right decision and we’re sticking with it for the good of the country.

“We’ve reversed the decision because it was a distraction.”

:confused:
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Which decisions did they reverse?

Did they reverse the IR35 decisions they made last week?

Did they also reverse the stamp duty decisions too?
 
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