presumably you breaching it is predictable and based on hours/overtime etc. Mine isn't. about 40% of my income is variable and based on things (arguably) out of my control that I'm paid (very well) to try and control.
2022 mini-budget discussion
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But then everyone else would be along for the ride. Thus it would probably be sorted.
Ah yes. Erratic bonuses and dropping in and out sounds like an absolute nightmare.
Yeah. If it is like it is, having a simple whatever percent above whatever point seems like a more sensible, clear and fair way.
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Soldato
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Maybe you missed a two, as you'd have £2,200 in your pocket.
As for the stealth tax, that is what you call "employer contributions"
At 100k salary, those are 13k ish, thus, you dont earn 100k, you earn 113k
Just an interesting addition, i know people earning 25k, who refuse overtime with the argument of "i'll just pay more tax".
So in terms of my decision to accept a 6k raise from 100k, the answer might be yes or no, if the answer is a no, and you change that marginal rate from 62% i believe, to zero, meaning i will get the full 6k extra after taxes. My answer will still be no.
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lack of sympathy average tax rate at 100K doesn't look any more discontinuous than 50K despite annual allowance removal above 100K
Soldato
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as a high earner the 45p reduction didn’t make sense tbh.
To me removing the personal allowance reduction over 100k and moving all bands higher would have been the sensible decision.
To me removing the personal allowance reduction over 100k and moving all bands higher would have been the sensible decision.
Semi predictable. I hit it without trying and then any further incentive exceeds it and goes into pension.
You missed the bit (possibly in a different post) where I was talking about 100k earners with kids. As soon as you exceed £100k you have to pay back/lose out on the £2k childcare topup.
if by "mitigated with a bit of planning" you mean pensions etc to not pay the 60% rate. That's all well and good, but what if you actually need more money, as your mortgage, energy bills etc etc are all going up massively? If their costs go up 10k, they need a 25k pay rise just to break even. That's huge.
If you're saying the answer to the moaning is to just do things to avoid paying it, what's the point in the rule being there? Surely a fairer rule, that people actually pay instead of try to avoid, is better for generating tax income and also those people can actually then spend that money instead of squirrelling it into a pension to not be seen by the economy for 40 years?
Your story seemed plausible on the surface till I saw your location said London.
I'm not going to pry but to me it seems like there is more to it than just money management in your case.
Now we know why Crazy Kwarteng was laughing at the funeral, looks like he came up with this idea there and then.
We're on the outskirts but still in Zone 6. Bought 5 years ago. No money from our parents from either side, we just saved for a number of years until we can afford it. We just work our asses off and don't spend anything apart from our monthly outgoing. The only real luxury we gave ourselves was the 'home cinema' which is really just a very big OLED with an amp and surround speakers. But we don't go out and that's fine we prefer to be chill on our comfy sofa.
Soldato
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I also think no self assessments should be needed if you’re 100% PAYE, no matter the amount. Even if not, only income outside of paye should need to be declared on the self assessment.
Ha no, just a 77-inch OLED with a Denon 3500H Amp and Q Acoustics 7.1 surround speakers so that we have real Atmos from the ceiling. It more than does the job and anything more will overtake the living room completely.
Got the TV for 3k (waited for it to be the end of line as the launch price was 12k), the same with the amp for £500 (lunch price £1k) and the speakers were £550 for 5.1 and at the time they threw in 2 extra free and instead of selling them on and used them in an Atmos setup.
It's about making smart choices. Now I have a kick ass setup for £4K since Oct 2019. we used to go to the cinema 2-3 times a month and usually about £30-£40 each time. It's more or less already paid for itself by now.
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Ah, still nice though. I just assumed you had something that is common with some of the Americans with their basements for a dedicated room which are normally pretty big. Everything all blacked out, black walls, black ceilings. Drop down cinema with some of the central speakers behind or below the screen.
Like a retirement fund project.
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Exact methods will vary depending on specific circumstances. Employees without any control are the worst off as they have no real control or ability to mitigate things effectively, but even then pensions are a thing. Ultimately at no point will the tax rate exceed the pay rise so if you really need the money for expenses then... you're still better off even if you are within the 60% marginal rate (ignoring other factors such as pension charges).
If you're a business owner then there is massive scope to mitigate either the impact or whether or not it actually needs to be used. That type of thing is what I'd charge money for though.
Employees without any control are most of the people we're talking about here though. Pensions are great to avoid paying tax but don't help you with the here and now.
And yes, whilst pay will still always increase, if your costs go up by £10k you need an extra £25k of salary to offset it, which is absolutely huge! And between mortgages and energy, that order of magnitude cost increase is hardly speculative...
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