Tax: what's a fair contribution (follow on from squeezed upper middle)

[EdmondDantes]

How much do you think someone who earns the following take home after tax. This then impacts lifestyle.

A) £25k
B) 50k
C) 100k

Fraidycat, those are exactly the behaviours that the 300000 additional rate taxpayers exhibited when the 50% rate was introduced.

Yes, and I can tell you from my personal experience, that psychologically it's the percentage that matters, not the pounds in my pocket. Tell me I can earn an extra 10K a year by working one day a week, and I'm all for it. Tell me I can earn 20K but have to give half to the government, and I won't want to do it. It's irrational, but true.

one day a week extra, I meant.

Tax NI is a basic rate of just under 33% at the moment at present (20% tax and 12.5% NI) so about a third of income over the single person allowance for most people. It goes up to 42% tax./NI though pretty quickly. It all too complex all the rates and reliefs.