Tax in UK

Scarfacé said:
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%?
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He's right on that, the marginal tax rate in England for earnings between 100k and 125k is calculated the same way and is 60%. The system is geared towards limiting wage earners take home above a certain point.

It's all the student loan stuff in his post that was ********.
 
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EvilRob said:
He's right on that, the marginal tax rate in England for earnings between 100k and 125k is calculated the same way and is 60%. The system is geared towards limiting wage earners take home above a certain point.

It's all the student loan stuff in his post that was ********.
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Fair. I think I understand what he's on about now, he's on about the effective tax on earnings between £100,000 and £125,140. If you combine the increase in the higher rate in Scotland with the loss of personal allowance the effective rate of income tax on those earnings is increasing from 63% to 67.5% (at the very limit of £125,140).

Edit: Which means his maths aren't wrong... :eek:

Well, other than adding loan repayments :D
 
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I feel the tax in the UK is too high given the way it is incompetently spent and the way it is given away to some since it is a way that does not promote hard work.
I'm firmly middle class and get hit fairly hard for tax given the service I receive back. No kids.

I buy pre-tax shares and put 10% into my pension to keep under the 40% bracket, however due to the tax band freezes I will eventually be hit by hit.
Won't be long until teachers and nurses are in the 40% bracket (and we all know how much they like to complain!).

It does make a mockery of people who actually try to make an effort in this world.
 
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OpenToSuggestions said:
I feel the tax in the UK is too high given the way it is incompetently spent and the way it is given away to some since it is a way that does not promote hard work.
I'm firmly middle class and get hit fairly hard for tax given the service I receive back. No kids.

I buy pre-tax shares and put 10% into my pension to keep under the 40% bracket, however due to the tax band freezes I will eventually be hit by hit.
Won't be long until teachers and nurses are in the 40% bracket (and we all know how much they like to complain!).

It does make a mockery of people who actually try to make an effort in this world.
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No kids means we get to keep a lot more of our money though.

But yeah. For how much tax is taken.. It sure seems like a lot Is wasted.

Sounds like you take home similar to me
 
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413x said:
No kids means we get to keep a lot more of our money though.

But yeah. For how much tax is taken.. It sure seems like a lot Is wasted.

Sounds like you take home similar to me
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Having children is a choice - I have chosen not to :).
I am grateful for the job I have. I don't even do Fridays anymore, but it does **** me off when the government says 'we all need to pull together' :p.

The amount of tax taken is huge when it everything is considered! I wouldn't mind if the public services are good, but they aren't.

I'm even at the point where I would happily bin off the NHS and get a tax reduction. Even my brother (Registrar Dr in NHS) has ended up saying the same thing as me due to how it is run.
 
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OpenToSuggestions said:
Having children is a choice - I have chosen not to :).
I am grateful for the job I have. I don't even do Fridays anymore, but it does **** me off when the government says 'we all need to pull together' :p.
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That's what I want. More time off!

Its my next goal. It's more important than more salary.

And yeah I have made the same choice on kids. It's more and more common
 
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413x said:
That's what I want. More time off!

Its my next goal. It's more important than more salary.

And yeah I have made the same choice on kids. It's more and more common
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It was an autism diagnosis that drove my 4 days, but I went from 5 x 7.4h days = 37h total to 4 x 8.5h = 34h total.
Unfortunately the world runs on money and I had to consider it.
The amount you take home really is not that much less! I strongly recommend considering 4 days.
 
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OpenToSuggestions said:
It was an autism diagnosis that drove my 4 days, but I went from 5 x 7.4h days = 37h total to 4 x 8.5h = 34h total.
Unfortunately the world runs on money and I had to consider it.
The amount you take home really is not that much less! I strongly recommend considering 4 days.
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Especially if you're in the 40pc bracket.
It makes dropping a few hours even more appealing!
 
413x said:
Really. Just need to exclude the student loan. As that is a debt to be paid.
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Yup. Apparently that's right that you have to pay 45% on the income you've lost your personal allowance against. I'm shocked and fail to understand how that's justifiable as it defies logic... surely it should be taxed at the basic rate?!

On that basis, his maths work out as if you had a £20k payrise from £100k to £120k:

You'd be paying 45% tax on that £20k, which is £9000.

You'd lose £10k of your personal allowance and that would now attract 45% as well, meaning you'd be paying another £4,500 in tax on top.

Therefore £9k + £4,500 = £13,500 total

So on that £20k you'd be paying 13,500/20,000 = 0.675 = 67.5%
 
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Scarfacé said:
Yup. Apparently that's right that you have to pay 45% on the income you've lost your personal allowance against. I'm shocked and fail to understand how that's justifiable as it defies logic... surely it should be taxed at the basic rate?!

On that basis, his maths work out as if you had a £20k payrise from £100k to £120k:

You'd be paying 45% tax on that £20k, which is £9000.

You'd lose £10k of your personal allowance and that would now attract 45% as well, meaning you'd be paying another £4,500 in tax on top.

Therefore £9k + £4,500 = £13,500 total

So on that £20k you'd be paying 13,500/20,000 = 0.675 = 67.5%
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Yeah but at that level of income you're rich and can afford it.
 
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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Right now I work 7 days a week and get 3 days of the pay and the government gets the rest. And that's before the change announced today.

I'll be doing all I can to shift jobs next year, from PAYE to Ltd Company.

The UK is a total basket case.
 
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