October budget going to be painful

[increasinglyconcerned]

Here we go..... I knew it. Labour were promising not to hike our taxes in the election campaign and here we are.... apparently they discovered £22 billion black hole in his first weeks in the role and it's not his fault.

Let me guess, those of us who earn six figures and already pay 45% will pay EVEN more and take home even less. It's the hard workers who will take the brunt. What's the point in working anymore!

I earn a little over £120k and I'm taxed the same as those earrings £500k.

Before people jump in saying they don't feel sorry for me, I work full time to support my family, as of January I will have 2 DCs in nursery, plus my mortgage and get ZERO free hours childcare, whilst they keep promising free childcare but I just pay more for everyone else to benefit.

I cannot afford to pay more taxes to fix this country and especially when so many people are getting a free ride and not paying their way, ranging from millionaires with tax havens to those claiming benefits dishonestly.

Whatever tax we pay through our lives is proportional to what we earn, what we earn is directly influenced by our skillset.
When we get old, what we have saved up regardless of earnings, all our lives, to leave to our families shouldn't be subject to further tax.

I was thinking that through whilst typing but equally wondering if it would be hard to do in practice - or turn out to be a v short list compared to what we have now.

It's really not at all listen to those that know. This isn't just about Russia that stormed and took a piece of Ukraine this is about other countries nearby worried if tissia will take them ie Finland etc that's why they just joined nato. I find some people like you don't see to realise this

@CrimsonShades

There is a reason the majority of the UK’s bankers, doctors, lawyers etc. aren’t working part time.

90% of the UK's salaried GPs work part time! That's the majority!

73% work between 15 and 37.5 hours per week.

15% work less than 15 hours per week.

Then we wonder why we can't get GP appointments.

21.8% of 16 to 64 year olds are economically inactive.
We cannot afford this number of people to be economically inactive.
An ever decreasing number of working people paying taxes are paying to support the inactive. Those with genuine disabilities receive lower payments because of those that work the system.
A member of my family works at the CAB. you would be shocked at the number of people who walk in off the street and fill in a form to say that they cant walk a few feet. There is massive abuse of the system and as the number working diminishes the tax amount those working pay has to go up.

You asked why the OP doesn’t just give up their job and I answered.

Hiwever you dress it up, the Labour ideology is exactly tax people who earn more and give it to people who do not so fuck off with your patronising “six form” response. I don’t believe it says anywhere in my post that you are a Labour supporter?

And you may have missed it …..but the world has changed so it is perfectly possible that people can and in fact do leave but it’s the country rather than their job. So many jobs can now be done from anywhere and if you are naive enough to believe that people can’t and won’t move to somewhere else then you clearly have more in common with sixth former than I do.

The line was they wouldn't increase taxes on working people which was a typical Labour obfuscation but also a lot of mystery on which taxes would be raised.

They preferred to stick to the line and beat down any suggestion there would be more taxes, hence the whole backlash against it when it came up

Lots of talk about a high tax burden, which is now going to be even higher

Keep going and you'll start getting diminishing returns as people opt out

The pp had it right you can't expect the pie to get bigger if you keep hammering at ways to grow it

As for CG and big business keep in mind that other countries are in a surplus due to being very attractive on tax, you are in a global market

I agree about business and corporate tax having too many loopholes and also it is based on the retailing model of the last century.

However, the IFS commented before the election that it would be painful whoever won, so this is no surprise. If I told you dogs bark, cats miaow, and the Gallagher brothers have had their differences, you would not be surprised either.

So we can't raise tax on the wealthy because that would discourage people from working harder.

We can't raise taxes on middle earners because they're suffering enough already.

Taxing workers on lower incomes ditto.

We can't cut pensioners' fuel allowances because that will be hard for those just above the pension credit threshold.

We can't increase inheritance tax because people don't like it.

We should be forcing people "off benefits and into work" even though harrassing people with sanctions hasn't worked for the last fourteen years.

We're an ageing population but we musn't import more workers.

We have a housing crisis but insist all housebuilding happen somewhere else.

We want a great public sector but we musn't pay those people good wages.

I thought the last government was terrible, I hope this one will be better. But maybe part of the problem is also our impossible expectations?

Yeah I don’t get it when people say that. They don’t have in demand, high salaries skill sets then. Literally all the globals in know are giving people the opportunity to transfer if they want. That’s part of the world we are in now.

I wouldn’t have to give up my job. Transfer to NYC. A much higher salary as even on 6 figures - the salaries here are lower. Less tax, insurance paid. No job change required.

You don't even know what you gonna get taxed maybe he could go after companies like amazon that pay sod all tax he spoke about non doms . Personally I say tax mire on profits on the energy companies that are making massive amounts of cash

Pride.

Where’s your evidence that it’s happening?

Oh ffs. Cry me a river. Give over. 99% of the population, I.e. almost everyone will give no sympathy to someone earning over six figures because they will taxed a bit more, considering the lower income families have been paying a higher proportion of tax ever since the threshold were frozen.

More tort scaremongering.

@nearlylovemyusername I totally agree. OP is just frustrated but this is a frustration that you are hearing more and more. Of course people are not going to quit their job or (in most cases, move country) but they are quietly quitting. Depending on their ages, people are taking early retirement or reducing hours or moving to 3/4 day weeks. This does not change their income but it means that the economy is stagnating. People are losing their goodwill and upping tax rates for P.A.Y.E workers is not going to produce the increase to get the country moving again.
Virtually none of the current systems are working well. It is the fault of previous governments. People are tired of being taxed and not seeing any real change and then being asked for more.

This is a very real worry. Not only well-paid Brits relocating abroad, but the UK becoming a much less desirable destination for well-educated, ambitious foreigners looking for a good place to work, pay tax, educate their DC, etc. We're dual citizens and will stay until our kids are educated, but after that we're now seriously considering moving back to our other country. I NEVER thought I'd say that! When we moved back here 15 years ago I planned to live in the UK for the rest of my life, but people like us (well paid, well educated, ambitious) are seen as cash cows to be milked by this country. In our other country, we're not, and there is only so much creative accounting you can do before you go 'Fuck this, I'm off'. Those of us with options will increasingly make these kind of calculations in future.

Would it be unfair or untrue to say that the vast majority of workers are NOT high earners and may contribute more due to volume?

Perhaps a graduated tax system would be acceptable to many i.e. low base rising by say 10% increments based on salary above a certain amount and before reaching a higher figure. OK that might mean that similar tactics will be used to minimise tax but it might be fairer overall.

Child benefit cap should be increased.
WFP should be means tested. So if you are ONLY getting State Pension or credits, you get it, otherwise no.

Lots of things can be done, it will be interesting to see what, if any!

My son is a graduate trainee actuary in one of the UK's biggest insurance firms. Along with several of his graduate colleagues, they're all planning to leave the UK as soon as they're qualified. Some plan to stay with the current employer in their overseas branches, others are actively researching places like Dubai and various tax havens. Some plan to continue working for the UK company, but "working from home" whilst living in another country to avoid UK taxes, particularly IR35! In his firm, remarkably few of the qualified senior actuaries are actually living and working in the UK - they've mostly already moved abroad.

I've seen the same with some of my clients. I had a couple of actuaries contracting through their own limited companies for firms like Scottish Life, Axa, Friends Provident, etc. They all "left" the UK when IR35 was imposed a few years ago. The highest earner now lives in New Zealand but still doing the same contracting work for Axa UK at the moment! But paying nothing in tax to the UK Treasury. All due to the stupid IR35 rule that caused a massive brain drain, not just to British industry, but also to the NHS as it also hit freelance locum doctors etc who've mostly gone abroad too!

Well said.

That’s because the people earning less wouldn’t be able to EAT if they paid out anymore.
High earners have wiggle room with their money, low earners do not.
BUT they are likely to work far harder than people in their comfy office jobs earning 6 figures.
YABU. I’m glad the labour government is doing what a labour government is meant to do.
Slum it with us lower earners and get a lower paid job if you feel so strongly OP.

That’s because the people earning less wouldn’t be able to EAT if they paid out anymore.

Do you include pensioners on the basic state pension in that?

I earn a little over £120k and I'm taxed the same as those earrings £500k.

But it's also the case that someone earning less than half your salary will be taxed at 40%, so an extra 5% seems very little.

The tax bands need looking at imo.

There hasn’t been a suggestion of higher income tax though. That is your mindread completely.

Good old dubai that uses slave labour to build buildings people died but yes. People selfish that dint want to pay tax for a system that helps everyone this is so me me me attitude now isn't it. Countries that dint help jf anything happens to you god forbid your child has an accident can't work in a country like dubai that won't get help bet he would come back here then. This is the attitude of so many isn't ut it's despicable

I agree @OnlyTheBravest. The people who can leave, will. The people who can't will find other ways to say 'Fuck it'. They'll cut their hours, stop doing overtime, retire early, take lower paid, lower responsibility jobs, they won't be ambitious any more, because this country's tax system punishes you for being ambitious, so why bother? You might as well trundle along in a less stressful role and avoid all the extra taxation.