20% vat on fees

[namechangedforthisone35]

IF Labour get in and IF the 20% does get added to fees, how many private school pupils will be moved to state? I have three kids (one not school aged yet) and in private school. One of many reasons because I didn't want them in a class of 30. I couldn't afford the vat increase so would have to move them but then that class of 30 becomes, what, 40?! In an already strained and unresourced system?!

Wwyd?

Y - I'd have to move kids to state
N - I'll pay the vat

Yes indeed, everyday I work towards building a great boat proof wall.

Moving on from usual odd stuff trying to derail in pp. It’s 🤷‍♂️ to me that they invest time in trying to goad but hey

Yes it’s sad and it’s a shame if your dc and others will lose support due to it.

This whole notion that higher earners somehow don’t pay a fair share is nonsense.

I’m in a senior role with a very good salary. My entire income is PAYE. I cannot avoid a single penny of tax. I pay marginal rates of up to 65% + NI. Last year I paid over 80k income tax. I’d love to know what the rationale is for making me pay even more.

There comes a point where higher tax rates and the constant chipping away of your take home pay through changing thresholds and the like make you look at how soon you can retire. I could easily retire 6 years earlier than planned. That’s half a million in lost receipts for the Treasury. If high end tax rates were more reasonable I’d work for longer.

This country needs to do more to protect and embrace higher earners. Without them the country is bankrupt.

Surely the tax reciepts would only disappear if you retired if your job also disappeared when you retired?

I assumed labour would be building a whole load of new schools before implementing this though so they can encourage people back to state.
Surely the money from stopping the non dom status will pay for them.

Is that to replace those schools that are dangerous due to RAAC and other issues?

In the current economic climate the reality at higher levels is when someone leaves businesses do everything they can to use the opportunity to reduce costs.

Any replacement, particularly for longer serving higher paid employees, are invariably at a much lower salary.

There’s a big difference between % tax paid on 100k vs 200k.

On 100k you pay 27k tax + NI. 200k is 76k + NI.

On top of this many such businesses are now actively looking at ways to have employees based overseas for tax purposes. They wouldn’t be pressured to do this if higher rates of tax were more reasonable.

Thank you for clarifying that often those who are paid a lot are paid more than they need to be for the role they do.

If that’s the conclusion you reached from my comments then I strongly suspect you have an agenda.

I certainly do have an agenda. To understand as fully as I possibly can what other posters are saying. It is reassuring to know I have been successful on this occasion.

If you’re paying £80k tax I would think you were well past losing your personal allowance? So your marginal tax rate was 47%.

That’s correct. I was referring to marginal rates in the plural. I pay some of my income at 40%, some at 65% and the reminder at 45% all + NI.

By that logic you also pay some at 20%.

But your tax rates aren’t different to most people with children at private school. Oddly once you’re on £125k you can pay your share to support people on considerably less

And some at 0%.

That’s incorrect. I don’t have any at 0%. I pay tax on every single pound I earn.

But again so what. So do I.

You must live somewhere with a tax system I am not familiar with then.
In the UK the first £12,570 of income is tax free.

Higher earners lose that allowance.

Not once you earn over £100k. For every £2 you earn over £100k the personal allowance is reduced by a £1. By the time you get to £125k you essentially have no personal allowance anymore and pay 45%.

Between £100k and £125k you have a marginal rate of tax of approx 62% as the pa is withdrawn.

“Lots will rent and get their kid to the top of the waitlist then move back to their real house.”

Councils check for this already, @NotTheLastUserName

I did not know that those who earn over £125,000 lost the tax free allowance.

Its good to learn new stuff.

Indeed. Once your adjusted net income (in essence, your income less pension contributions and Gift Aided charitable donations) is over £100k, you lose £1 personal allowance for every £2 you earn.

Plus if they are mid year transfers that waitlist place could last for ages.

Apologies, I meant to tag @Nordlo

Forgot about that. Yes them too
I really hope we have a lot of people with non dom status.