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.

Or taxing the ultra rich correctly? Clamp down on those who use creative accounting to keep their money hidden!

I am feeling nervous as to what Starmer and Reeves will go for next. Pensions seems likely as an area to hit, but I would not rule out more means testing on benefits, higher fuel taxes or other areas. We shall see.

Perfectly said. Just because people don't earn over 100k, doesn't mean they don't work hard!

Right now there seems to be a lot off uproar without any real facts.

Labour said they would not increase income tax so either they are going to go back on an election pledge or the talk of 50% tax rates is just gossip to whip up fear

The things there have been more serious rumours about...

• equalising tax relief on pension contributions so higher tax payers don't get higher tax relief. This will hurt me personally but it's hard to think this isn't fair. Everyone should get equal relief, giving equal chance to save for their retirement.
• Capital gains. Fair enough. If you've gained then you should be taxed as if it were income (imo) with similar tax bands.
• Inheritence. Also fair enough (IMO) - even though it's unpopular. It's another one that may hit me one day but it it is another form of financial gain to recipients and should be taxed in line with income and CGT (imo).

And the winter fuel tax they' ve already said - which again seems somewhat reasonable considering the triple lock which last year more than made up the loss of the WFA.

None are ideal, of course, but all are things I can see the reasons why and accept.

@WitchyBits teachers do not earn a pittance. That’s total rubbish

I’m wondering 1) who had the good times, and when were they? Missed that - higher tax payers have paid tonnes more tax 2010 onwards per the IFS - so this higher earners should pay more is yet more divisive populism from Labour 2) how is this supposed to promote economic growth?

and 3) why the constant teasers - announce some tax rises and stop telling us we’re walking the plank soon.

That’s simply not true. I work with a lot of well paid people and have never known so many choosing to negotiate 4 day working weeks, buying several weeks extra holiday etc.

People are fed up with ridiculously high marginal tax rates.

In some cases people actually end up with more money working 4 days than 5.

I’d be interested to know how many on here who appear to believe that 100k+ earners are bottomless tax cash cows would be happy to work an extra day every week for no pay?

Oh I don’t know ….. how about pride, a sense of achievement, wanting to do well for oneself … all
things that are the complete opposite of the Labour ideology.

I’m genuinely amazed though at the surprise ….. tax those who do and hand outs to those that don’t is the labour mantra. All wrapped up in the usual bollocks of it’s just luck not hard work, ambition, risk taking and guts that gets you anywhere. If you are on a good salary, you are now the ATM
for everyone else so suck it up.

@SphinxOfBlackQuartz I completely disagree on pensions - public sector workers have 20-23 percent employer contributions. My private employer contributes 3 percent.

it will massively hit private sector higher rate tax payers. It would only be fair if people had similar rates of employer contributions. And even then, it discourages pension savings. So not great in the end for pensioner poverty.

If you didn’t have your salary you probably wouldn’t have been able to buy a house and the security that brings. Good luck trying to buy a house in minimum wage and no windfall from anywhere else. Even renting is hard in those circumstances.

I also don’t think getting buy on benefits is as easy as you think.

Well of course you are and of course you do.

What a way to react as you have to those paying high tax since we all need it for the services

@cosyleafcafe

If OP is earning just over £120k then she is not being taxed at 45%. She's being taxed at 40%.

Nope, her marginal tax rate on her wages between £100k and £120k will be a whopping 62% because of the tapering removal of her tax free personal allowance. She's also losing the tax free child care. So, yes, she's probably worse off at £120k than she'd have been earning only £99k.

That's why people earning between £100k and £125k should either pay the excess over £100k into pensions or reduce their hours to get back under £100k.

It's this kind of gross stupidity that RR and KS need to be tackling. They need to be thinking of ways to get people working more, rather than the typical Labour way of taxing them till the pips squeak. By the latter, it just means people work less, which is bad for the economy and increases the likes of waiting lists in the NHS when doctors work fewer hours to avoid these insane tax cliff edges and stupidly high marginal tax rates.

The British people have bled the country dry. Have you seen the statistics on worklessness and productivity? We are an aging population that is getting sicker mostly due to lifestyle factors. A quarter of our population is now disabled. We have huge and growing financial burdens and fewer and fewer people that are able and willing to be net contributors. This problem will only get worse and the Labour government has absolutely no answers.

But they will still be worse off than you.

I understand your frustration that someone earning £300k a year more is in the same tax bracket. Same for those on £60k a year. So I completely get your point here and it is soul destroying seeing how much of your wage is taken away from you when you look at your pay slip.

I think you worded your opening post in a way that will rile people up, because there are a hell of a lot of low earners who work incredibly hard doing important jobs. And you must realise your wage does afford you a nice lifestyle that most couldn’t dream of, it just doesn’t come across like that in your post.

There are far too many very wealthy people who are allowed to dodge tax payments, there are too many loopholes to move money that are morally wrong, but not illegal. These are the people that should be taken to task. (And I am not saying that’s you OP clearly it isn’t but I think you’re directing some of your anger at the issue in the wrong place)

You lost me at "The hard workers bear the brunt"

We could probably name 100 other occupations that work harder than you, and probably more essential to the running of soceity, for not even a quarter of your salary, so boohoo!

But you said are earning just over £120k. So how are you paying 45% tax?

If you're in the UK then you are paying 40% tax on anything below £125,140 and 45% on anything above that.

You said you earn just over £120k.

Even if you earn £129k, you can't possibly be paying 45% tax on more than a couple of thousand pounds of your income.

The money has to come from somewhere. What were you expecting?

Don't you want decent public services? A working NHS? Decent schools? Funding for SEND children? Better housing? Or will you be paying privately for these?
I don't think they will be raising income tax btw. It will be capital gains tax, inheritance tax etc.

well done you, and go on then give up your job, your house, and go on benefits see how you survive ? Your post is an insult for every hard working minimum wage person out there!

The pre GE message I'd assume

How much more of your tax would you like to see go up?

Ah I see, I didn't realise the personal allowance tapered. Thanks for explaining.

This.👏

Where has OP said she begrudges helping people at the bottom?

How the hell is someone on 6 figures "the middle", that would be those earning average wages ie,30-40k (pre-tax), anyone on 100k+ is not the middle of anything, they are earning 3x the national average and more than 5x the minimum wage

Excellent post 👏