Overtime should be tax free

[RedneckStumpy]

If you are giving up family time to bring home extra money to support your family, why should that be taxed?

Why do you think the tax on OT is worse than the tax on regular employment time?

It’s the same rate...

Of course, the answer is for employers to recognise that hours over 40 are particularly impactful on family / non work life, and so pay a premium for those hours.

Overtime rates!

Those were the days...

Paid overtime. Consider yourself lucky!

None of us want to be taxed on anything! But please tell me how else you think we should fund our public services?!

Many people view paid overtime as a positive not negative as it’s an opportunity to earn extra money which of course you must pay tax and national insurance contributions. You’re lucky to have paid overtime as for many employees, overtime is unpaid. If you don’t want the extra money you can always turn down the overtime.

Did your DH get to work in a car/bus so use the road system? Did he travel in daylight or was it dark so the streetlights were on? Was he safe as protected by a police force / army? Is DH registered with a GP? Do you have children at school? The list goes on...
How do you think these should be paid for?

Yep agree with others, how lovely to be paid overtime, I guess though at least I don't get taxed on the free overtime I do.

It wouldn't bother me to be taxed on overtime but it's irritating to be taxed on bonuses but again this could be abused as everyone wpuld have a low salary and a high bonus. Only thing with bonuses is that DH earn fractionally over the 40% rate and someone who earns a couple of k less than him a year takes a hell of a lot more of their bonus home than him but that's just life, we appreciate he is very lucky to get one at all.

Really? None of us should pay any tax on anything we earn?

Be grateful that you have the opportunity to pay tax. It is a privilege.

I see paid overtime as a benefit. I am happy to pay tax on it

Just don't work overtime to take you into the next tax bracket then surely?

When I was part time there was absolutely no point in working overtime because I was just earning below the tax free threshold every month. I think I worked out I would have to work the equivalent of full time hours to actually earn anything after paying the extra tax. So I saved my time and stayed at home.

Lucky him getting paid for any overtime.

Stupid suggestion, maybe you'd get some sympathy if you posted a sensible discussion about unreasonable employers and lack of work like balance rather than nonsense more suited to comments on facebook.

Fatted - that doesn't make any sense, you might have paid some tax on your extra hours but your normal hours would still have been under the personal allowance

The tax rate on overtime is actually higher than that of standard time for many people because of tax-free allowances. It's a lot higher if the overtime pushes you into a higher tax bracket.
I think there's a case to equalise it, but have no idea how this could be implemented.

Paid overtime. Ho ho ho. That'd be nice.

The tax rate on overtime is actually higher than that of standard time for many people because of tax-free allowances. It's a lot higher if the overtime pushes you into a higher tax bracket.

Well, yes but no.

Tax free allowance is £11,850. Tax rate 0%
Basic rate is £11,851-46,350. Tax rate 20%
Higher rate above that.

So the tax rate is not "higher on the overtime". It might make your total earnings go into another bracket, but that's a different issue. The tax rate on overtime is the same as the tax rate on regular employment.

I wouldn't mind paying tax if we did actually get the full services. Yes my bins get collected but doesn't that come from council tax? I've been let down by the police in a very bad way (mainly due to budget cuts). The NHS service right now is questionable, not because of the staff but again because of budget cuts. I can't comment on schools as I have no young DC, but teachers seem close to breaking point! We're not getting the services we pay for. We pay a lot of tax in comparison to a lot of other countries. So yes I do kind of begrudge paying a lot of tax.

Fatted you would only have paid 20% tax on the money over your tax-free allowance. You don't go from paying no tax to paying tax on ALL your income. Just the bits in the next tax band up. It's a surprisingly common misperception, though.

I would support a capped flat tax say 20% tax/NI or 33.3% tax/NI on all income until you have paid say £100k tax a year and then you may no more no matterh ow many hours or amount you earn. I think Guernsey has something similar.

Nonsense more suited to Facebook - ouch!!!!

Sorry but this is stupid.

So speaks the high earner.

I'd probably prefer the opposite No tax up to say £15K, 25% on everything between £15K and £100K, and 50% on everything above £100k.

Get rid of NI. I suspect my idea would leave the Treasury with a lot less than now though.

My comment was in reply to Xenia's not the OP's. I can see where the OP was coming from but it's not workable as people have pointed out.

Paying £100k a year in tax is something most people can only dream of, Xenia.

YABVU

What a ridiculous suggestion. My salary includes an expectation that I will have to do overtime sometimes. Does this mean that I shouldn't pay tax on a part of my salary?