To ask what you'll be doing to avoid the Labour tax hikes

[OptimismvsRealism]

Pension contributions
Gift aid
Selling my shares now while CGT is relatively low

What really worries me is that all the professionals we actually need to want to be here will just fuck off elsewhere, though.

It's not like we're knee deep in hospital doctors.

You trust Labour to administer your tax receipts, then?

Amazon pays most of its corporation tax in Luxembourg.

The NHS is an infinite money pit, the more it does the more people want it to do and treatments and drugs get dearer all the time with medical progress.

Schools are almost the same, however good they are people want more, more one to one for children with problems, more one to one for really bright children, more sporting facilities for sporty children, more drama, more music, better buildings, more outdoor space, better teachers, better discipline.

And everyone wants higher wages, more benefits, better houses and a better standard of living.

There will never be enough money raised from taxation. You can't tax the poor, you shouldn't over tax the squeezed middle, you can't over tax businesses that provide the jobs or even the rich who fund the businesses that provide the jobs. If you put high taxes on pensions or IHT you risk more people falling back into reliance on the state and at the higher end moving wealth or themselves overseas.

I'm assuming in the budget tax relief on pension contributions will go down, capital gains tax will go up and changes to IHT to rake in a bit. Maybe a raid on savings or a windfall property tax, maybe phasing out of ISAs. I'm not sure any of it will make a dent in the funds needed for education and the NHS let alone anything else.

It’s called the Laffer curve.

Yes, that's the problem. They should be paying it to the UK on UK profits.

If people want to move because their taxes are too high, I say good riddance. Even the ones who openly threaten this rarely do it. It's just wealthy people throwing their toys out the pram.

Anyone planning to move (so about 1% of those that say they are) really is nowhere near as rich as they have convinced themselves. They might impress a few MNetters, but in the real world there is a large cohort of much much much richer people who are wonder what all the fuss is about. Because nothing any government has ever done has come anywhere close to their wealth.

As you were.

She’s not going to run out. And if she does, the state allocation will kick in as it does for all the other pensioners who aren’t millionaires.
I do plenty for her, but feel she should pay her way rather than letting my kids buy her icecream and dinner on days out, when they’ve taken time off work to spend a long weekend with her, spending £80 on fuel, and doing donkey work that never actually achieves anything.

Yes, people should pay suitable levels of tax, including my mother. Not sure why people seem to think she should be exempt.

@Begsthequestion
Because it's still 40% up to £125k (appreciate its c.20% up to 50k). May= 40% of the year or thereabouts.

Factor in nics as well.

No doubt someone better at maths than me can work out the precise date.

Regardless, on an approx income on 220k, I get to keep 128k.

Earn £220,000 in 2024/25 and you'll take home£128,386.
This means £10,699 in your pocket a month.
Over the year you'll pay £85,203 income tax and£6,411 in national insurance.

No I won’t leave because I am not that mobile but it does leave me questioning why I work so hard just to pay more tax. I can no longer afford private schools so am reconsidering my options as I am probably starting to be better off at home with my kids doing homeschooling and claiming benefits. It actually sounds pretty good to me personally! Silver lining after all

I am not sure where all these high earners will bugger off to given we can no longer live and work in Europe.

UAE or Qatar. Low or zero tax and with a high income you can have a full time cleaner, nanny and gardener.

they already are better. By virtue of not being rapists and sexual assaulters or whatever else you want to pick off of there

Yes I agree with that too, @Didimum - that's also why I said Labour could "hardly be worse" than the last lot - but it seems a bit of a low bar when, for all the money and perks they're getting, I'd expect not being a rapist, etc, to be the very least we should expect

Not that expecting it makes any ruddy difference, when too many turn out to be exactly that

I'm assuming in the budget tax relief on pension contributions will go down, capital gains tax will go up and changes to IHT to rake in a bit. Maybe a raid on savings or a windfall property tax, maybe phasing out of ISAs. I'm not sure any of it will make a dent in the funds needed for education and the NHS let alone anything else.

A windfall land tax will destroy the country. Many, many people are property rich and cash poor and could not just find money to pay a windfall land tax. Lots of people in small terraced houses in london for example who therefore have an asset worth over a million but no spare cash.

I’m an anaesthetist working overseas.
Depending on what the changes are it’ll probably reduce the chances I return to the UK.

It’s not necessarily the high taxes, it’s more the fact that despite them services are still awful.

I think people who are not already non dom, will start to move operations out, as has been a trend for a while is more the point. It’s not so much about moving per se, it’s about the overall state of the environment. Just my opinion.

The figure being mooted is 0.48% pf a property's value per year. And this would apply even though everyone who currently owns a home already paid stamp duty when purchasing.

That's a truly massive amount for people to find. It would have an enormous impact on the housing market

People can and do leave the country for tax reasons. Not just the mega wealthy and not just doctors. It doesn't happen on a one-time exodus date, but gradually as people assess their personal circumstances and opportunities.

Scientists, researchers, senior professionals- all needed and useful.

But the more common reaction to not being allowed to keep a reasonable amount of what you earn is to stop working so much. I already don't do additional freelance work because just under half the pay would be taken in tax. If tax rates go up even more/pension relief is lowered, I'd want to go part-time.

Everyone I work with and at my age level is thinking the same. 45% tax is enough.

Agree, it’s to do with value

2 of my friends who are doctors and their families are in the middle of going to Australia

my sons godfather who is in banking is no w technically resident Amsterdam (he spends 5/6 days pm in his London home)

so yeah?

im probably going to go try to go part time for the next 3 years because im too punatively taxed over the 120k mark

My BF and her family moved to Australia last year (her DH is a consultant). He is paid much much more in australia (although they are finding it very expensive)

They can be sponsored by their employer. Or get nomad visas. Or investment visas. Highly skilled people are typically in demand so the immigration side is not so much an issue.

Op, to answer your question - I'm similar to @newusername2009

I can't avoid taxes, but I'm changing my behavior.

Labour screwed my DC with VAT on school fees, I had to move them from their perfect fit school.
No way I'm going to continue working to pay even more tax. I'm reducing my hours drastically with almost everything going to pension now (I'm mid 50s).

I'm certain Labour will raid pensions now so will retire by Christmas. Have a few options planned when I see the budget as to what to do with assets /IHT.

Anecdotally - every single one of my colleagues/friends in over 50 bracket reduce their hours to stay under threshold, be it 50k or 100k. We joke here that every annual pay increase means increase of part timers.

Yeah I agree.

I earn £50 - £60k and can accept a higher tax bill in exchange for a more balanced society.

Personally looking forward to paying more taxes. I am lucky enough to be a high earner and I feel under taxed.

Labour’s plans seem centered around reducing tax breaks, rather than increasing tax on workers which I think is extremely fair. People bunging £40k a year into their pensions will still receive tax breaks, just not as much as they currently do. They’ll still be getting a freebie, they’re just greedy and want more. It is wealthy people who benefit from pension relief and CGT. They think they’re entitled to pay less tax than the working man. By the time I can draw down my pension I’m sure I won’t be able to take 25% tax free, and I don’t see why I should be able to. It’s income that I haven’t paid any tax on yet, but I’ve benefitted from years of growth on that amount that has this far been untaxed. I have no issue with it being taxed once I do take it as income.

Similarly if I go under a bus tomorrow my estate will be liable for IHT, which I don’t have an issue with. My children will still get a nice fat wedge for doing bugger all, and I’m sure they’ll be thrilled with their share even once the chancellor has taken his slice. And I’ll go to my grave happy that I’ve given a bit back to the country that raised me (I grew up in care), educated me, took care of my health and brought my children safely into the world.

I am not sure where all these high earners will bugger off to given we can no longer live and work in Europe.

As PP said, if you work in a large organsation like an IB, your work can sponsor your visa, and this is a normal, ongoing practice. I’ve never heard of anyone moving internationally with work to have visa issues.