[Uridium]

Is it just me or does anyone else think that the Higher rate tax band is too low nowadays?

I'm not mega rich or anything just getting by the same as most and hovering just under the higher rate tax band.

Trouble is as soon as I do a bit of overtime or anything it takes me over for the month and I pay 40% tax on it.

[Ethics Gradient]

Originally Posted by uridium

Is it just me or does anyone else think that the Higher rate tax band is too low nowadays?

I'm not mega rich or anything just getting by the same as most and hovering just under the higher rate tax band.

Trouble is as soon as I do a bit of overtime or anything it takes me over for the month and I pay 40% tax on it.

I don't know what you are whinging about, it's not like you need to earn 40k what with the cost of living being so cheap.
I mean, it's not like the cheapest flat near where I work is 180,000, or that council tax is 1,000+..... and what with utility bills being so cheap along with the value for money petrol prices.

..... you're just obviously greedy

[Uridium]

Yes I think your right, maybe I'm just being greedy. As you say the cost of living here in the UK is so low :-)

Come to think of it by the time you add VAT onto everything you buy and Car tax/council tax etc.. I think I'm probably paying nearer 60% tax nowadays.

good old rip off britain eh!

40% income tax rate is lower than many seem to think; only £33,300 so watch your payslips!

[mickrick]

I didn't realise I was sailing so close to the wind until my brother, who is an auditor (an a typically tight-arsed one at that) told me to cut back on my OT. The problem with higher-rate tax in this country is that it is deliberately aimed at a low-point earnings bracket so as not to anger the real high earners in the country, who in turn will switch their voting allegiances or, worse still,take their loot with them to tax-haven countries.

[DJT75]

Why would you cut back on over-time? You'd still be earning money for doing it, just paying slightly higher tax for the part that takes you over the edge, not the whole income..

[JohnG]

40% income tax rate is lower than many seem to think; only £33,300 so watch your payslips!

Well I'll be OK for a good few years yet then

[Mac Man]

The higher rate banding is one of Gordon Browns greatest sleights of hand. Millions more people now pay 40% tax and it's nothing to do with their overall real wealth increasing in that time.

The 40% tax bracket was something like £26K nearly 20 years ago.
When you look at how much other items have gone up since, I think the true rate should be over £40K in real terms, compared to the 1980s

We have all been royally turned over without most of us even realising it.

[DJT75]

Originally Posted by sean5302

What greater need is there than for somewhere to live?
If you buy a house costing £125k there is no tax. £125,001 and you pay 1% or £1250. How is that fair? That extra pound on the sale price has cost you an extra £1250 in tax.
Or £250k costs you £2500 tax, but a house sold for £250,001 costs you £7500 tax. Ridiculous.

At least income tax is banded. Stamp duty seems grossly unfair, especially as bog-standard houses cost so much now.

Stamp duty really bugs me, my 2 bed house is worth £240K, I need to move to a larger house in the next 2 years & I'm gonna get stung big time, it'll cost about £15k in stamp duty & other fees just to move, that's another £100-£150 a month on my mortgage

[~Kev H~]

Originally Posted by Chris Lamle

We have all been royally turned over without most of us even realising it.

That's exactly what just dawned on me! Surely the point at which the 40% kicks in should be raised by the rate of inflation every year! to my knowledge inflation is about 3% these days isnt it?, that's how much the Student loans company are charging me in interest the last time I heard from them anyway.

I'm now looking for work as I graduated this year, and one of my friends has just landed himself a job starting on £28k, won't be long until he hits it! and he's only just left education!

[the whistler]

What really annoys me is that when you do hit the 40% rate, then it affects any other income you may have e.g interest on savings then becomes liable to 40% tax.

[Mac Man]

Originally Posted by ~Kev H~

That's exactly what just dawned on me! Surely the point at which the 40% kicks in should be raised by the rate of inflation every year! to my knowledge inflation is about 3% these days isnt it?, that's how much the Student loans company are charging me in interest the last time I heard from them anyway.

I'm now looking for work as I graduated this year, and one of my friends has just landed himself a job starting on £28k, won't be long until he hits it! and he's only just left education!

It's worse thasn that mate.

The rate should rise (theoretically) in line with earnings which are generally higher than the rate of inflation. So the limit should have been rising by at least 4% every year.

Stamp duty should have risen by the rate of house price inflation. So the min rate should be at least £150K by my reckoning. Just another way the govt can tax us without a peep from the voters. It was £60K in the days when you could buy whole streets in East Lancs for £60K.

When we look back, Gordon brown will surely go down as the sneakiest Chancellor in history. Personal taxation is now at its highest rate since the 1970s.

[KoThreads]

Originally Posted by Chris Lamle

We have all been royally turned over without most of us even realising it.

Unfortunately I feel that way about everything these days. I love this country but it is getting just too expensive. And the news has just said power bills are going up yet again. I just find it so hard to believe.

[Ultima]

Originally Posted by uridium

40% income tax rate is lower than many seem to think; only £33,300 so watch your payslips!

The 40% rate applies to earnings above £38335 (£5035+£33300), not £33300.

Regards
Martin

[Shady]

...moving house in October - and we are facing an 8 grand stamp duty bill.

What exactly do I get out of this ? This will be the largest single outlay I have ever made and nothing is ****ing me off more than having to shell out this cash which I could use to reduce my mortgage further.

It grieves me that it will go towards paying for some layabout chav to spawn further litters or to put asylum seekers up in hotels...

...it's not as if the house is some grand mansion, just somewhere larger to spend our future years in.

I would quite happily vote for the Opposition (whoever they may be), whilst the present government does nothing about it this tax, however if someone does have the balls to change the policy - it will be too late, I am sure there is no chance of a rebate if the stamp duty policy is reviewed...

It makes me so angry.

[madcyril]

I have understood tax,why cant everyone have the same rate of tax,say for example 25%.The more you earn the more you pay anyway,25% of £50k is obviously more than 25% of £25k.

[Mac Man]

Originally Posted by madcyril

I have understood tax,why cant everyone have the same rate of tax,say for example 25%.The more you earn the more you pay anyway,25% of £50k is obviously more than 25% of £25k.

Quite a few countries do operate a 'flat tax' scheme. Especially some of the old Soviet Bloc countries.

What hacks me off is that it is the middle income earners that bear the brunt of tax. I'll bet my life savings that very few of the super rich pay anything like 40% on their incomes.

I wonder how many footballers hand over 60% of their income to the taxman everyweek? Can't see it myself.

[la gran siete]

dont know why peole are bellyaching in here . There are many who have to get by on incomes far lower than £33000 and do so without complaining. Be grateful is what I say.A £28000 starting salary??If I'd been his boss he would have started on the minimum wage and then he would have to prove himself

[Uridium]

Originally Posted by la gran siete

dont know why peole are bellyaching in here . There are many who have to get by on incomes far lower than £33000 and do so without complaining. Be grateful is what I say.A £28000 starting salary??If I'd been his boss he would have started on the minimum wage and then he would have to prove himself

I did start on far far less than the minimum wage many years ago before the minimum wage even existed. regularly working 60hr+ weeks in all weathers in order to take home enough to obtain anything like the current standard the minimum wage provides. Through a lot of hard work I have now got to the point where I'm earning just over £31k. What I object to is the way two tier system simply penalises the borderline earners with the same taxation levels as the very rich.

[la gran siete]

Personally i've always thought they shou;ld introduce another band of about 60 %- wacked in now at 100k. they could the up the 40% threshold abit

[Mac Man]

Originally Posted by la gran siete

dont know why peole are bellyaching in here . There are many who have to get by on incomes far lower than £33000 and do so without complaining. Be grateful is what I say.A £28000 starting salary??If I'd been his boss he would have started on the minimum wage and then he would have to prove himself

Think your missing the point here LGS.

Gordon Browns tactics have moved many more people into the higher tax bracket. People like police sergeants, lower middle management, senior nursing staff etc. Not quite the 'big earners' that you'd imagine.

Originally Posted by la gran siete

Personally i've always thought they shou;ld introduce another band of about 60 %- wacked in now at 100k. they could the up the 40% threshold abit

Great move there. You must be last of the old socialists.
I remember the days of the last labour government when anyone with any cash simply moved out and paid NO TAX to the exchequer. I'd rather have people paying 25% on the vast incomes than 0% on their offshore account in the Bahamas.

[Ed Selley]

Whilst I'd be most keen on a flat tax system, there perhaps would be scope for a 30% bracket between the current 22 and 40% brackets.
As for today's statemment from everybody's favourite class warrior;

Originally Posted by LGS

A £28000 starting salary??If I'd been his boss he would have started on the minimum wage and then he would have to prove himself

Depending on what role is, the levels of debt that many specialist graduates are harbouring these days is such that the SS has to be that high to make the role remotely cost effective to them. As to the idea of "proving myself" to you, I have let out an involuntary shudder at the thought. How would one go about doing that then?

Spurn resturants where a course costs more than a tenner as "posh"?
Ignore the enviromental and safety benefits of a new car as "poncy"?
Show an understanding of economics that I normally associate with a counting circus horse?

Or do you need the trifecta?

[russ123]

Seeing as you pay NI at 10% up unto £33,540 + the 1% you pay on all earnings the higher rate jump is really "only" from 33% to 41%.

[Moosh]

Why not scrap all tax except for VAT. But put VAT on every item bought. That way the people who stay on benefits just for the sake of it will have to pay tax!

[Ultima]

Originally Posted by uridium

Through a lot of hard work I have now got to the point where I'm earning just over £31k. What I object to is the way two tier system simply penalises the borderline earners with the same taxation levels as the very rich.

If you earn £31k approx you are £7k under the higher rate threshold so don't worry yet about 40% tax.

Martin

[Uridium]

Originally Posted by mmahmed

Why not scrap all tax except for VAT. But put VAT on every item bought. That way the people who stay on benefits just for the sake of it will have to pay tax!

Don't we do that all ready? in addition to Income tax/council tax/Fuel/vehicle license etc..etc..etc..

[Uridium]

Originally Posted by ashworthacca

If you earn £31k approx you are £7k under the higher rate threshold so don't worry yet about 40% tax.

Martin

Does quite work like that though does it?

I have an on-call allowance of £350 a month that goes on top , add a few hours OT for the last couple of months at double time and bingo the Overtime for this month is taxed at higher rate

[Ultima]

Originally Posted by uridium

Does quite work like that though does it?

I have an on-call allowance of £350 a month that goes on top , add a few hours OT at double time and bingo I'm in higher rate tax this month

So you don't earn £31k then, sorry for the confusion.

Martin

[la gran siete]

Originally Posted by Ed Selley

Whilst I'd be most keen on a flat tax system, there perhaps would be scope for a 30% bracket between the current 22 and 40% brackets.
As for today's statemment from everybody's favourite class warrior;



Depending on what role is, the levels of debt that many specialist graduates are harbouring these days is such that the SS has to be that high to make the role remotely cost effective to them. As to the idea of "proving myself" to you, I have let out an involuntary shudder at the thought. How would one go about doing that then?

Spurn resturants where a course costs more than a tenner as "posh"?
Ignore the enviromental and safety benefits of a new car as "poncy"?
Show an understanding of economics that I normally associate with a counting circus horse?

Or do you need the trifecta?

my you seem quite impressed

[la gran siete]

Originally Posted by Chris Lamle

Think your missing the point here LGS.

Gordon Browns tactics have moved many more people into the higher tax bracket. People like police sergeants, lower middle management, senior nursing staff etc. Not quite the 'big earners' that you'd imagine.



Great move there. You must be last of the old socialists.
I remember the days of the last labour government when anyone with any cash simply moved out and paid NO TAX to the exchequer. I'd rather have people paying 25% on the vast incomes than 0% on their offshore account in the Bahamas.

Thing is, and I am not going to belabour this as it wouldnt make any difference anyway, there are millions who HAVE to get by on far more modest incomes than 33k ie pensioners, low paid workers many office staff, factory workers etc. They would more than welcome a 33k salary nad they wouldnt grumble about paying 40%. As it is they get on with it as we all have to.
A 60% higher rate seems eminently fair to me. The sevsnties Labour gov had it at 87% .

[imightbewrong]

Originally Posted by uridium

Does quite work like that though does it?

I have an on-call allowance of £350 a month that goes on top , add a few hours OT for the last couple of months at double time and bingo the Overtime for this month is taxed at higher rate

At 31K your hourly rate must be about 16 quid an hour (?) - double that to 32 for overtime.
31K + 350 a month = about 35K
Higher rate kicks in at 38K ish, which allows 3K of overtime taxed at the basic rate
3K / 32 an hour = about 90 hours a year or about a working day a month
Also, just to be clear, your overall tax is worked out based on the year as a whole, individual months don't matter. You could do all 90 hours in one month and none in the rest and still pay the same tax (in the end).

As someone else said, the higher rate tax only applies to the salary which goes over it - it's not like (stupid stupid) stamp duty for instance - so doing more over time will always earn you more money, it just comes in a bit slower at the higher rate.