The loss of an individuals personal allowance (for earners over £100,000) should increase each year with inflation.

Indeed they are.

People earning £100k are ordinary people.

You're just not very clued up on this issue and parroting what you've heard.

What is really concerning imo is that £100k isn't thought of as a normal salary and the average salary should be around £75k

But also the fact that someone earning £125k is paying the same tax as someone earning £200k, where as the difference between £25k (around £3,400) and £100k (around £31,000) is so wildly different

Sadly for the nurses once they reach band 8d or 9 on the pay scale this taxation issue becomes their problem too.
You think it only applies to bankers and lawyers?

No.

the problem is the richest in society avoiding paying their taxes. The problem is people like Starmer and Farage exploiting loopholes to avoid paying their taxes. The problem is corporations and the like not paying their way.

going after ordinary people doesn’t help one bit.

Hi @AmazonianWarrior - you may want to start your own thread with this question and then you will get more specific response to it

good luck!

Ultimately if you want to have more revenue overall you want a system where the vast majority of people at all levels of income just grumble a bit about tax vs actively taking steps to avoid paying it. You currently have a system where the vast majority in £100-125k and lots on £60-80k that have families actively take steps to avoid tax. You have a similar situation with UC tapering at the bottom end where people with families actively choose to work less hours as they’d be worse off overall working full time taking childcare costs into account or they’d have so little extra for the additional work it just doesn’t feel worthwhile. It’s all part of the same issue & it’s all bad for overall tax receipts.

All the people earning around £50,000 and only paying 20% is a problem. It's not enough.

The top 10% of income earners pay 60% of all income tax receipts. The top 1% pay 29% of all income tax.

Proportionate? No.

But lower earners do pay tax.

meanwhile, they can’t afford to feed their families. And the higher earners bitch and moan about paying, and about their private school fees increasing.

Its not me staying it though - is it

Such an immature reaction. Do you know how much tax these people pay so you lower earners don't have to?!

The problem of having a lot of money?

Maybe that threshold can be raised when our nurses don’t rely on food banks to feed themselves and their families.

Op can you link the headline please @Itsthedifference

Not an ounce of sympathy from me OP. Boo bloody hoo, 100k is a massive salary.

They do! That’s the point

At least try and understand the problem.

Honestly all the cliff edges are poor policy (UC credit, child benefit at £60k, tapering from 100k). The loss of tax free childcare/free hours at £100k is the worst of the lot.

It makes more sense to me to make some things like the personal allowance, child benefit & free nursery hours universal. Relatively few people are not entitled to them anyway so the additional cost of making them universal isn’t a lot and it means everyone feels like they get something for their contribution.

We have been around the border for losing child benefit the past few years and we just take unpaid leave in the holidays for childcare because overall it loses us so little it feels worth it to have time with the kids. So if I go from £60-65k I can

Take majority of the month of August as extra holiday and not get any of the £5k but save ~£1.5k in holiday club fees (net of what I’d spend to entertain the kids at home)

Pay 40% tax, 2% NI and payback about £600 of child benefit when I do my tax return and earn an extra £2,300 net a year then pay £1.5k extra in holiday clubs so overall end up with £800 more than taking the leave.

Longer term I might earn a lot more and lose the childcare fees in the holidays (& eventually not have child benefit as a consideration) so I’ll do something different but right now I’d rather buy the extra holidays.

At the 100k threshold it actually costs parents more to work and it’s very unrewarding getting that extra even for those without kids.

What any one individual does isn’t necessarily important but having a structure that basically encourages lower productivity in higher earners doesn’t make sense if you want to maximise revenue.

The doctor pension stuff sounds appalling. If you’re clever and hardworking enough to be a doctor you have so many other options in your life you could do and not have any of these problems. But the rest of us lose out because we need doctors. So shortsighted and typical of modern Britain.

If £99,999 basically becomes the max wage for people of childbearing age in the uk, then no one’s wages will go up other than when the government forces minimum wage rises (then we lose jobs as there’s no extra money swilling round above that people are spending to absorb the costs).

They do pay their taxes! A hell of lot more taxes than lower earners.

Have you considered trying to actually engage in understanding the ideas, and why this is being discussed?

It's so refreshing to see someone willing to change how they think slightly on here! I don't think I've ever seen it before 😍

We do. It’s what carries everyone else.

The whole point is that they don't take the hit. They reduce their income.