To think that the tax system for lower earners is ridiculous...

Sorry OP but at £28k for part time you’re not a low earner.

£28-30k is AVERAGE for full time.

I think OP thinks that life is terribly hard in the USk on a low salary which it no doubt is, but life is also pretty crappy at all salary levels. Costs have gone up a lot recently and salaries haven’t so everyone feels very squeezed.

What’s your alternative? The tax burden is already the opposite of what you think it is, I can’t remember the exact stats but it’s something like 10% of people pay between 60-70% of the tax receipts value. The only (in theory) “fair” tax system is everyone oats the same percentage but then you’d a lot more.

I suggest your actual issue is you believe lower paid people should receive a higher % salary increase than higher paid people, which is something to take up with your employer.

That isn't a difference between higher and lower earners. If you're on PAYE, you're paying the applicable rate of tax upfront whether you're earning £20k or £200k.

The lower effective tax rate kicks in when income is based on interest and dividend payments (i.e. passive income from wealth) rather than anything earned through a job.

Every penny counts at all salaries. Id argue at 40k plus (when benefit entitlement stops) it is even more galling to pay higher levels of tax.

But your income is taxed after the personal allowance at 20%, just like any other UK resident. I really don’t see what the problem with that is.

That’s because dividends and capital gains aren’t taxed at income tax rates, something Labour have said they are not going to change alas.

OP I think the biggest problem is the freeze on the lower threshold for tax, that hasn’t been increased with inflation which means a bigger portion of your salary is subject to tax. To be fair that’s the same for middle income too but when you are on low pay, it’s a stark fact that tax has increased stealthily.

It's even more noticeable for working pensioners. We don't pay NI, so no reduction to offset the freezing of allowances.

My part time earnings are around £1200 a month gross. We got a paltry 3% pay rise, and I ended up £9 a month better off. The pension increase and freezing of personal allowances mean that I pay tax on more of my earnings, so I don't get the full benefit of the £18pw or so increase in my state pension.

I couldn't tell you the last time our "essential user" car allowance went up, and mileage rates have been unchanged for longer than I can remember.

I think it’s how the tax system is supposed to work…lower earners paying a lower effective % tax rate compared to higher earners.

The reality is quite different though because higher earners can put money into tax sheltered sources of income. It’s closer to a regressive flat tax.

For example, last year prime minister Sunak published his taxes. It showed that he paid a tax bill of £508,308 in the financial year 2022-23 on overall earnings and gains of £2.23m.

This means he paid an effective tax rate of 23% in the UK – much lower than the top rate of 45%

Yes, really. That’s how the tax system works? People earning less pay a lower percentage of their earnings. And in this country lower earners pay far less tax than in many other European countries. The real craziness in the system is the tax cliff edges. The Government did at least try to resolve the £50k child benefit cliff-edge to a certain extent in the last budget but the £100k cliff-edge is pure stupidity and stagnates growth. Like many people I see little point in going for a promotion or new job to take me over the £100k in order to pay 60% tax.

That's why you get a tax allowance and higher earners pay more tax too. If you haven't enough money, then get a better job.

The tax thresholds which sets the level at which tax is paid have not changed for years. It means that there has by stealth in real terms been a tax increase which affects those on lower incomes more than those on high incomes.
Yanbu

I earn the same as you as a part time teacher, and think the tax system is fair.

10% of the UK population already pay 60% of the tax bill.

Half of families in the UK take more OUT of the benefits system than they pay in nowadays.

I would like to see more support given to families that want to work but don't earn enough compared to the cost of childcare, particularly at the moment when you have 2 children under 3.

A flat tax would be regressive.

Well, I think OP would not have complained as she did about the unfairness if her company was doing it like that.

Exactly.

I earn 47k a year, and it barely goes anywhere once you factor in high mortgage costs (I live in the SE), bills and cost of living. It’s not a high wage at all, and no benefits or other forms of income. OP’s salary increase was good to be fair, ours was only 3%…

Plenty of professionals in the stats.
Professional, technical and scientific sector had as many on furlough as did the Entertainment, Arts & Recreation sector.

I love how people claim that something is 'always like X' when they couldn't possibly know that (you know how every single company in the country decides it's payrise? Really) and it is something they are wrong about.

We have one of the highest tax free allowances in Europe, and the highest NMW. It's complicated, there is a very fine balance to be had between fairness in tax and provision of services for all. If you want equality go for flat tax, for everyone. The argument is you get more tax, as no-one avoids it, and there is more buy in frim all levels of society if everyone contributes something.

Not worked in many companies have you? This is EXACTLY what one employer I was at did!

I think it’s the opposite! I think after you take into consideration taxes paid, benefits received (or not), access to free childcare etc I think you’d be surprised how little the gap is between those earning £30k and those earning £50k. And those on the higher salary have probably worked hard to get qualifications to deserve that higher salary.

The answers to poor public services do not lie in taxing high paid earners more, the answer lies in making all UK residents pay more (increasing the basic rate of tax, cutting the triple lock, taxing dividend and other earnings at the same rate as income tax etc).

The problem is that tax bands are frozen and haven't risen with inflation as they should have done, so we are all paying too much tax.

I'm in the 40% tax bracket which is even worse!

People like me with ordinary jobs, are now finding themselves in the higher rate tax bracket - we are ones who are really being hammered.

I don't know of any professionals who were furloughed during Covid. Most can do their jobs from home or, in the case of medical professionals, were essential and kept working.

I think the main beneficiaries of the furlough programme were lower paid workers in the service/hospitality industry.

Well, obviously OP’s company did it by a flat %, not a flat £ per her OP.

A company won’t do a % for some employees and a £ for others- they always do one or the other.

It is true.

The increase in NMW is not an employer, company wide COL pay rise.

NMW is a government mandated minimum wage. Its increase is independent of employers internal decisions.

Some trade/civil service unions do negotiate pay rises that have a fixed element to it instead of a blanket % increase.

But again, government mandated and union negotiated pay rises are not company wide COL pay rises