I can tell you now, unless the tapering allowance is fixed, there will be a mass exodus (or even more of an exodus).
2022 mini-budget discussion
- Thread starter Harlequin
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Sounds like a situation where you'd literally chuck it all into a pension to get back to 100k and get the tax relief.
I take it we don't know how more growth translates to their wish list of things? This graphics below makes easy pickings for Labour or meme generators, they've pretty much abandoned 'Levelling up'.
We're right on the edge of a recession, are the only G7 nation not to return to pre-pandemic levels and have one of the lowest rates of corporation tax. Nonsense and lies.
We're right on the edge of a recession, are the only G7 nation not to return to pre-pandemic levels and have one of the lowest rates of corporation tax. Nonsense and lies.
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Which is what you do. But when rates hit it'd be useful to actually capture some of that value (and pay the tax on it).
What does doing alright mean? I live in a poorly maintained 3 bed semi on a main road. If rates go up I'll have to sell my car. I needed a boiler so I had to sell my wifes car.
Lucky I am given all these choices huh
Seriously, not only do you come across as hopelessly out of touch with reality, if you're on 100k and that's your lot, then you've made some really **** poor decisions in the last few years. Me and my wife are just over half your salary and sitting pretty in a 5 bed new build. I watch my money like a hawk and we don't have cars and the last holiday we've been on was 2018. And we live comfortably compared to most, eat well, have a home cinema which has paid for itself by now because we don't waste money going to the cinema. I don't mean to boast but it's all about money management and your posting today has shown me your extremely poor at it
Soldato
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That's only really an option if you're just over the £100k threshold and not already contributing significant amounts to your pension.
I pay 10% of my salary into my pension, and considering that it's just another big casino (see what happened last week) then I'm not really comfortable paying any more into it. Certainly not by the amount by which I exceed the threshold.
It doesn't matter who you are or what you do, it's ridiculous to expect anyone to earn £6k and take home £200. We shouldn't be left to dream up ways to avoid it; it's our money, it isn't a gift - it's earnings, and it's already taxed at 41%.
It's up there with the rules on child benefit, TBH. A shameful legacy for whomever came up with the idea.
This is just nonsense.
I’ve lived in London, I lived well, lived in some very nice flats. earned nowhere near that, half the time I worked 3 days a week if that.
I know people who own nice houses in London who have never earned that in their whole lives.
if the plan is to buy the biggest house you can and pay it off asap, build a pension whilst having 2 or three kids and thinking you can have foreign holidays and drive newish Chelsea tractors I can see why someone might struggle, but that’s not the only way is it?
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Your life's a mess, you have my pity
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The biggest problem has been that tax bands have not been adjusted in line with inflation, which means more and more people have ended up in the higher bands of tax. This includes the 100 - 125 loss of personal allowance. The other problem I have with it is that few are aware that the highest rate of tax in the UK is actually 62% because of it - it feels like a stealth tax in many ways, and people tend to only raise concerns once they are personally affected (although that's true of most things!).
To be fair, pension contributions don't have to be invested in S&S. Most of mine is currently in cash (I transferred it into a SIPP recently and haven't picked a fund for it yet - I'm aware of the inflation erosion) so is "immune" to market results at the moment.
Don't mix the pension crisis last week that affected DB pensions to the more recent / modern DC pensions that most people are on now either. DC pensions aren't tied that closely to government bonds and weren't impacted by the bailout last week.
Soldato
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This 100-125 Black hole. If it's a really big issue in that progressing though it is not worth it do some just "stop" and below it?
And ones pushing through are hoping for 150+ etc salaries in time to make it worth it?
Not a troll post. A genuine question. As, like you eluded to, it will. Probably never affect me
When you say home cinema, is it actually a dedicated full sound treated and calibrated room with a big projector screen? with several lazy boys and beverage holders where nothing else takes place?
Why do you think it could never affect you? If inflation carries on in the way it has you could easily see your salary rising to those kinds of levels before the end of your career.
I don't expect it to. I can't see getting to 100k plus.
I'd have to take on significantly more responsibility. I mean my salary would have to double.
I don't think it would even be worth it. At that point I'd rather more time and less hours and stay below it.
Also. If I got there there would be so many other people there that I suspect something would be done about any tax anomalies long before that.
Wholes it's only thr 1pc affected there isn't much pressure to sort it. If 40pc of people are there I'm sure it would be altered
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Why would you have to take increased responsibilties? Just inflation-driven payrises could see you increasing it hugely.
I don't think it is a big issue, I think it's one that can easily be mitigated with a bit of planning.
The issue I had with it is that it came somewhat out of the blue for starters, having a partially bonus based roll it's hit or miss which side of it I fall. When you fall on the good side you then eventually get a demand for a self assessment and then eventually a new tax code.
The tax code this is no good because what if you go under next year? Then you're either trusting HMRC for rebates or claiming them, neither of which is a pleasant or simple procedure and for the other one hundred thousand pounds I earned you just took the money from me in PAYE and that was flawless.. so why make it stupidly difficult and opaque at £100k?
Plus yes with the tapering of the personal allowance the rate at that level gets eye watering but the worst bit is having to work it all out and either pay it out of the blue (and as discussed being paid £100k a year doesn't necessarily mean you're sat on piles of cash) or have your plannable monthly income drop because of an arbitrary tax code change based on HRMC thinking what happened last year will happen every year.
It's dumb, just tax me at 47% up to £150k or something? Done, simple, predictable and achievable in PAYE.
It's the firstiest of first world problems but it's also super unwelcome when you get those impenetrable letters from HMRC that end in a threat of a fine.
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