High earner leaving UK because of tax

[DonningDaFlameProof]

Hi all,

I'm well aware that I'm highly likely to be utterly slaughtered for this (thus the name change) but having read the thread about Corbyn and seeing several people saying that the theory that taxing high earners would make them leave the economy is a myth, I thought I'd share.

I'm British and was bought up on the breadline, went to state school, have a disability - just to pre-empt the "privileged" comments.

I started a business not that long ago (fortunately selling a service globally, and not registered in the UK as its main market is the Middle East) in the first few months it became obvious it was going to do well and I hired an accountant.

To cut a long story short, if I remained UK resident then my tax bill for my first year would have been approximately £120,000. This would have been just under half of the money I bought in.
Year 2 - tax bill would have been £230,000.

My family are not well off, so I was supporting a fair few people on this plus I started with nothing, so my first priority (after my family) was to save for a house as I was living in rented accomodation.

I am well aware that I am earning a high salary, and would never argue otherwise. But reading on here, people seem to think that a 6 figure salary means that you buy yachts for a laugh and eat diamonds for breakfast.

Good size family houses in my area started at about £500k.

For us, it made sense to move abroad for 5 years or so, save the money otherwise spent on tax, come back with that lump sum and buy a property outright.

And that's what we've done, it was insanely easy.

Now, the current plan is to come back to the UK in a few years time and settle down. We'll have a nice house then, and the tax bill we'll just suck up because we like the UK.

I keep seeing people harp on about raising taxes for the wealthy...if this happens, I know that we won't end up moving back. Because paying out half of my earnings is galling enough.

The top 10% of earners pay 60% of the tax bill.
The top 1% of earners pay 28%.

These people will also be privately funding their own medical care and schooling for their children. They'll also be heavily contributing in other taxes and of course pay VAT on the things they buy.

Raising taxes, abolishing private schools, penalising the wealthy in other ways is just going to drive them out of the country - leaving the tax pot far emptier, but the majority of people still relying on it.

AIBU to think that penalising the wealthy is not the solution?

So now that you have taken what you need from the pot you're out?
Well done you!

How much tax do you think people in the UK should be paying?
Bearing in mind the cost of living, housing, fuel, gas and food?

The top 10% of earners pay 60% of the tax bill. The top 1% of earners pay 28%

At least get your facts right.

That’s the % of the income tax collected, not total tax.

Income tax makes up about 30% of total tax collected.

And the bottom 10% pay about half of their income in tax.

And the bottom 10% pay about half of their income in tax

That's a very good point - and one that's forgotten by people when dealing in soundbites about tax.

Tax is not just income tax.
Government income is not just tax.

Aren't you concerned that Corbyn will confiscate that private home you plan to buy?

I'm British and was bought up on the breadline, went to state school, have a disability

So would it be fair to say that you benefited directly from the welfare state in your childhood?

Who paid for the education and healthcare of the people who work for you and made you rich?

So you pay 50% of your income in tax and can’t afford a third holiday in Mustique and someone on PT wages on NMW pays 50% in tax and can’t afford to eat.

Yes it is definitely the same, I’m so sorry for you

YABU

You’re basically saying you and your family benefited from the things we all pay for via tax, but you object to paying those taxes now you’re doing well for yourself. Supremely selfish.

Lower earners pay a high proportion of their income in tax (not just income tax) than high earners like you. So I don't have a lot of sympathy for you - my sympathy is for those who work minimum wage jobs on ZHC, live in precarious awful housing and are constantly hammered by Universal Credit.

Well said, OP. Of course, busloads of lefty types who claim to have the right to take everything you own will be along shortly.

Penalising the wealthy may not be ideal but it makes a hell of a lot more sense than penalising the poor.

OP, if you think of paying your taxes as being essentially a service charge for living in what is still a tolerably civilised country, it will be much easier for you.

For us, it made sense to move abroad for 5 years or so, save the money otherwise spent on tax, come back with that lump sum and buy a property outright.

Fine. Not sure why you want to be congratulated on it though. You may have "saved" the money but others would say you have avoided paying tax to a country that funded you when you needed it and that you intend to return to.

These people will also be privately funding their own medical care and schooling for their children.
You don't have to go to private school or private hospitals. It is a choice, not an obligation! And just because you do, doesn't mean you don't benefit from other people having healthcare and schooling. It's called being part of society.

We do need to provide a certain amount of services in this country.
They cost money.

How should they be funded? Do we need all the services?

So who paid for your health needs, schooling, maintaining roads, policing etc when you were growing up in the UK on the breadline?

Taxes supported you and now you make more than you need, you don’t want to help others on the breadline or maintain societal needs.

Talk about pulling the ladder up. Selfish. Let’s hope your business doesn’t fail and you come back expecting help with your disability from the NHS.

Even if you’re privately funding your own medical care you’ll be treated by medics who have been trained and developed through the NHS.

YANBU, OP.
The very wealthy will always find ways to avoid paying taxes.
The middle class will be further downgraded.
The poor will remain poor, and further robbed of upward social mobility chances.

High taxes sap opportunities and job creation.

How are you “paying out half your earnings”? I thought the U.K. tax brackets worked like our US ones. So you pay only the higher rate on the income over the threshold for that bracket, not the higher rate on all your earnings

Personal allowance Up to £11,850 0%
Basic rate £11,851 to £46,350 20%
Higher rate £46,351 to £150,000 40%
Additional rate Over £150,000 45%

So say your earnings were £250k and you have no deductions whatsoever, you’d pay:
£0 in tax for first £11,850
£6,890 in tax for income from £11,851 to £46,350
£41,460 in tax for income from £46,350 to £150,000
£45,000 in tax for income from £150,000 to £250,000

Which is a tax bill of £93,350 or 37% closer to “a third” than “half”
In fact no matter how much your earnings could be, you’d never pay out a full half term mathematically impossible.

I’d just love to know exactly what you do!
?

Tory Central Office seems to be busy today.

High taxes sap opportunities and job creation

Says the people who earn shit loads.

Because of greed, they’ll never think whether it’s fair that those right at the bottom lose half of their earnings to tax 🤷🏻‍♀️

People who work to build the private hospitals, the private schools and to work in them as well need to be paid.

Of course, they could be taxed more if that's what you want. Then they will need more money to work in those places, thus increasing the cost of running those places so you will have to pay more if you want to use them.

So - if the OP does come back - how should these services be fairly funded?

You’re right op of course

But all the people who feel entitled to a chunk of your hard earned cash are enjoying telling you otherwise!