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To think people earning >100k should pay more tax

(170 Posts)
KatieHack Thu 21-Nov-19 19:10:33

Our tax rates in the UK are mad! I think everyone on a personal salary (not family) of 100k+ should be taxed at a higher rate (say 45%). With my bonus, mine isn’t far off this number and at my age, I reckon I’ll get there, so this isn’t a ‘screw everyone on a high salary post’ but really it seems madness to me that everything above 50k is taxed the same!

runoutofideasnow Thu 21-Nov-19 19:17:55

I'm assuming you're not in Scotland then as our tax bands are different to rUK.
Over £150k you're taxed at 45%

In Scotland you also lose your non taxable allowance once you hit £125k

I think the rates are about right tbh. I just think public bodies need to spend their money more wisely.

Dongdingdong Thu 21-Nov-19 19:18:41

YANBU OP.

runoutofideasnow Thu 21-Nov-19 19:19:06

but really it seems madness to me that everything above 50k is taxed the same!

They're not taxed the same though, they pay more as it's a percentage.

kjhkj Thu 21-Nov-19 19:19:21

really it seems madness to me that everything above 50k is taxed the same!

erm.. it isn't confused

Screamqueenz Thu 21-Nov-19 19:19:39

Okay, what about if my salary is above £100k, but the rest of the household don't work.
That's £100k divided by 4, £25k each.
And we are taxed at a significantly higher rate for the vast majority of our salary.

MarshaBradyo Thu 21-Nov-19 19:20:30

Everything above £50k isn’t taxed the same

MsRomanoff Thu 21-Nov-19 19:20:36

Your op doesnt even make sense.

kjhkj Thu 21-Nov-19 19:20:43

We pay 45% tax on salaries over £150k and lose the personal allowance on salaries over £100k on a taper basis.

Floatyboat Thu 21-Nov-19 19:20:53

They lose the personal allowance. Earning just above 100k is taxed at a very high marginal rate.

kjhkj Thu 21-Nov-19 19:22:03

plus we lose tax efficiency on pensions

GrumpyHoonMain Thu 21-Nov-19 19:22:51

I think self-employed individuals shouldn’t be allowed to trade under limited companies, and to qualify you should have at least 5 employees. That would start generating more tax.

Expressedways Thu 21-Nov-19 19:23:15

They are taxed at a higher rate. Firstly because it’s a percentage and also because those earning over 100k have less personal allowance (the personal allowance decrease by £1 for every £2 over 100k). I person can’t bring myself to get upset about low six figure earners paying what they owe in tax when they are much higher earners and businesses that work the system to reduce their taxable earnings.

Hisdoeherbuck Thu 21-Nov-19 19:23:30

Tax across the board is too high

Bluntness100 Thu 21-Nov-19 19:23:38

You do understand it's a percentage of your earnings, right? So for example forty percent of 50 k is a lot less than 40 percent of a hundred k and as such they do pay a lot more tax.

Or is there some confusion there?

Coughsyrupsucks Thu 21-Nov-19 19:23:58

I’m never very good at explaining this about personal tax allowance, so stolen off a website.

‘ Anyone with income over the £123,000 will lose their entire allowance. As a consequence the marginal rate of tax for someone with income between £100,000 and £125,000 will be 60% (tax at 40% on income over £100,000 up to £125,000 PLUS tax at 40% on the loss of personal allowance up to £12,500).’

So there’s a weird point where you are paying 60%, earn a bit more and it goes down again.

JonSlow Thu 21-Nov-19 19:24:25

Companies will just pay their higher earners more, which will then take it away from the lower ranks.

Titsywoo Thu 21-Nov-19 19:24:57

Well in all honesty I feel we pay a lot of tax. Personal allowance is gone and dh pays 43k in tax and ni each year and he earns 115k so actually the percentage when you include ni and loss of personal allowance is fairly high.

RufusthebewiIderedreindeer Thu 21-Nov-19 19:25:15

I think its madness that everyone over £160,000 is taxed the same

KatieHack Thu 21-Nov-19 19:25:19

@runoutofideasnow yep, I take your point, I still just think there should be a tertiary tax band at say 45% above 100k (maybe 120k London) interesting to hear everyone’s opinions 🙂

Titsywoo Thu 21-Nov-19 19:26:09

Admittedly dh only loses part of his personal allowance but it's most of it

kjhkj Thu 21-Nov-19 19:26:12

But there is a 45% tax band!

RufusthebewiIderedreindeer Thu 21-Nov-19 19:26:16

Plus cough is right

Cept its 62%....I appreciate that cough was using the 60% as an example though smile

GettingABitDesperateNow Thu 21-Nov-19 19:26:24

I think morally you're right, but pragmatically, there is a point at which when you increase tax, it puts the highest earners off from relocating to the UK, and also means they do more to 'hide' their earnings. Different studies show the point that peoples behaviour changes as being different, but it's just not always true that higher rates of tax = more tax collected

HundredMilesAnHour Thu 21-Nov-19 19:26:40

People on over £100k DO pay more tax. Not just in absolute terms but anyone earning over £100k starts to lose their personal tax-free allowance so if you earn £125k, you get a personal allowance of ZERO (instead of £12,500 which is the standard allowance) and once someone hits £150k, they start paying income tax at 45%.

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