Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Do you think this is right?

12 replies

MixedCouple · 10/02/2024 15:03

Saw this today and yea I knew they get paid loads but this blew me away and not to mention the tax paid!!!!!
Who else thinks this is Ludacris or very resonable?

As someone who has teachers in the family and seeing them struggle it makes me super upset.

Do you think this is right?
OP posts:
Amba1998 · 10/02/2024 15:08

That’s not because of his MP salary. Thats from his own companies he owns and his wife owns. His MP salary is about £170k

Midnlghtrain · 10/02/2024 15:11

I mean ludacris might have an opinion 😂

Personal and business tax rates are not comparable - they don't scale the same way.

Magenta82 · 10/02/2024 15:22

I'm not sure how it's relevant to compare business and personal tax rates, business profit isn't the same as personal income in any way.

mondaytosunday · 10/02/2024 15:31

But that may not be his taxable income. I earn £45k, but pay taxes on £35k due to allowances/deductibles etc.

CurlsnSunshinetime4tea · 10/02/2024 15:57

OP do you take full advantage of the current tax laws and employ an accountant to help maximize your current and future income?
Most people I know do.
The more money you have the more tax minimizing schemes are legally available to you.

0rangeCrush · 10/02/2024 15:58

Hankunamatata · 10/02/2024 15:08

But he wouldn't unless teacher is earning over 125k

https://www.gov.uk/income-tax-rates

Or Scottish.

TheSnowyOwl · 10/02/2024 16:04

His PM salary is just a small fraction of that. Sunak is very wealthy in his own right and what he earns and what he earns and what is taxable are very different. The headline is designed purely to anger those who don’t understand that.

jcyclops · 10/02/2024 22:36

Sunak received 139k as PM and 293k as interest/dividends from savings and investments in 2022/2023. He paid £163,364 income tax on this £432,884 income - an effective rate of 37.7%. A teacher (in the pension scheme) on £38k in 22/23 would pay £7680 in tax and NI - an effective rate of 20.2%.

In addition he sold some investments with a Capital Gain of £1.8m on which he paid £359,240 CGT at 20%. People say why isn't CGT charged at the same rate as income tax. It used to be.

This gain could have come from a £3m investment he made in March 2015 that he sold for £4.8m in September 2022. We have no idea of the actual figures and we will never know. This is just an example to show how CGT works now and used to work in previous decades.

Before CGT was simplified to the current system (changes started by Labour in 2008) an allowance for inflation called indexation was applied and the taxpayer paid CGT at the same rate as their income tax. This indexation was reasonable as prices increase by inflation so an investment could be expected to have equivalent purchasing power years later when it was sold, and tax was only payable on any increase above inflation.

Under this far more complex system, the £3m purchase price would have been increased by RPI indexation from Mar15 to Sep22 which is 35.2%, so for tax purposes the purchase price would be £4.056m, the taxable gain would thus be £4.8m-£4.056m = £744,000 on which tax would be paid at 45%. The tax would thus be £334,800. As you can see this is a little less but very close to the amount paid under the current CGT system, yet the CGT is being paid at 45%. This system was used throughout the Thatcher, Major, Blair and part of Brown's government.

CrispsandCheeseSandwich · 10/02/2024 22:57

CurlsnSunshinetime4tea · 10/02/2024 15:57

OP do you take full advantage of the current tax laws and employ an accountant to help maximize your current and future income?
Most people I know do.
The more money you have the more tax minimizing schemes are legally available to you.

To be fair, I don't think OP is suggesting he is doing anything illegal. I think she is taking issue with the rules themselves, rather than saying he's breaking any.

MixedCouple · 17/02/2024 15:29

Oh yes I do not think anything illegal is going on....well I dont know, but not assuming that. Just blows my mind.

Yes I am of the mind that earnings / income should be taxed the same. No loopholes. Especially higher earners. And a higher earner for me (this is just my opinion) is anyone earning 100k plus should be taxed more.
I could go on.

My DH earns gross £50k snd he is taxed massive amounts. I no longer work and look after our DC. But know if I did we would probably in a much worse position.

I am a bit unrealistic I doubt anything will change that will benefit and help those on lower incomes to live a balanced life.

Side rant. I think it just blows my mind still how my parents in 1985 worked 6 years (minimum wage factory workers) and could afford to buy cash a 3 bed semi, 90foot back garden that coat 21k. And here we are my previous salary as a Radiographer was 29k and DH is 50K and we will never be able to afford a 3 bed semi with cash after only saving 6 years. Not even a bedsit! Not in 20years..
(P.s for religious reasons we dont deal with interest and loans etc)

OP posts:
WaitingfortheTardis · 17/02/2024 15:36

I think that's fine, it's proportionate to earnings. I have more of a problem with people avoiding tax in clever ways when they could easily afford to pay it.

New posts on this thread. Refresh page
Swipe left for the next trending thread