Tax in UK

So top marginal rate in Scotland for someone between £100-125k can be up to 84.5%.
  • 45% marginal tax on income over £100k
  • Loss of £1 of personal allowance for every £2 over £100k, so an extra 22.5%
  • 2% NI
  • Regular student loan repayments at 9%
  • Post-grad loan repayments at 6%
45+22.5+2+9+6=84.5%

Every £1000 extra annual income in this band will net you a whopping £12.91 per month :mad:
 
HACO said:
So top marginal rate in Scotland for someone between £100-125k can be up to 84.5%.
  • 45% marginal tax on income over £100k
  • Loss of £1 of personal allowance for every £2 over £100k, so an extra 22.5%
  • 2% NI
  • Regular student loan repayments at 9%
  • Post-grad loan repayments at 6%
45+22.5+2+9+6=84.5%

Every £1000 extra annual income in this band will net you a whopping £12.91 per month :mad:
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That cannot be correct
 
413x said:
That cannot be correct
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I think it is but student loan repayments have just been included so they can state an alarmist number. They aren't tax and in Scotland student loans are much smaller than England. I'd say the number of people who earn over 100k there and are still paying off their student loan is very small, and even if they are it won't be for long.
 
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EvilRob said:
I think it is but student loan repayments have just been included so they can state an alarmist number. They aren't tax and in Scotland student loans are much smaller than England. I'd say the number of people who earn over 100k there and are still paying off their student loan is very small, and even if they are it won't be for long.
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This is true. Didn't clock that.
Just put it in the MSE calc.
You'd be paying off your student loan at 700ppm.

Thats gonna knock it out pretty quickly.

If you're earning over 125k it won't be an issue. As at that rate it'll be paid off fairly sharp.
 
413x said:
That cannot be correct
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It is contrived to prove a point - he is adding in repayment plan 2 people who have done a degree and a masters. The fact this is Scotland and they get free education means it can't be right.

*someone fact check me :D
 
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413x said:
This is true. Didn't clock that.
Just put it in the MSE calc.
You'd be paying off your student loan at 700ppm.

Thats gonna knock it out pretty quickly.

If you're earning over 125k it won't be an issue. As at that rate it'll be paid off fairly sharp.
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Repayment plan 2 has outrageous interest rates so not sure that's true, unless people proactive they and get rid of them!
 
Surely 22.5% for loss of personal allowance should not be summed like that. Losing £1 of personal allowance for every £2 over 100k means that when you earn £125,140 or above, you won't have any personal allowance. Even in that 'worst case' scenario, it means you'd be paying the basic rate on the first £12, 570 instead of 0%... adding 15% for loan repayments isn't reasonable either. Agree it's a ridiculous amount of tax regardless but don't agree with the maths...
 
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dlockers said:
It is contrived to prove a point - he is adding in repayment plan 2 people who have done a degree and a masters. The fact this is Scotland and they get free education means it can't be right.

*someone fact check me :D
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You can get an education in the rest of UK and live in Scotland.

Scarfacé said:
Surely 22.5% for loss of personal allowance should not be summed like that. Losing £1 of personal allowance for every £2 over 100k means that when you earn £125,140 or above, you won't have any personal allowance. Even in that 'worst case' scenario, it means you'd be paying the basic rate on the first £12, 570 instead of 0%... adding 15% for loan repayments isn't reasonable either. Agree it's a ridiculous amount of tax regardless but don't agree with the maths...
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The math is 100% accurate. Between 100-125k you pay the top marginal rate (not the basic rate) for every £1 of personal allowance you lose.
 
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Scarfacé said:
Surely 22.5% for loss of personal allowance should not be summed like that. Losing £1 of personal allowance for every £2 over 100k means that when you earn £125,140 or above, you won't have any personal allowance. Even in that 'worst case' scenario, it means you'd be paying the basic rate on the first £12, 570 instead of 0%... adding 15% for loan repayments isn't reasonable either. Agree it's a ridiculous amount of tax regardless but don't agree with the maths...
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For sure. The lad has a history of making good points then fudging data.
 
HACO said:
You can get an education in the rest of UK and live in Scotland.



The math is 100% accurate. Between 100-125k you pay the top marginal rate (not the basic rate) for every £1 of personal allowance you lose.
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Rishi might have been right about something for once, with regards to what he said about the UK and maths.

The maths isn't 100% accurate, how can it be? Even in a scenario that you were right about the first £12,570 attracting the top rate (I don't think you are, unless Scotland is different), why would you sum 45% and 22.5%? You're saying income tax alone is 67.5%?
 
HACO said:
So top marginal rate in Scotland for someone between £100-125k can be up to 84.5%.
  • 45% marginal tax on income over £100k
  • Loss of £1 of personal allowance for every £2 over £100k, so an extra 22.5%
  • 2% NI
  • Regular student loan repayments at 9%
  • Post-grad loan repayments at 6%
45+22.5+2+9+6=84.5%

Every £1000 extra annual income in this band will net you a whopping £12.91 per month :mad:
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Where the hell did you learn Maths?
 
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