How will you look to mitigate Labour’s tax hikes? (Part deux)

[EverythingAllatOnceAllTheTime]

How will you look to reduce the impact of Labour’s seemingly endless (imminent) tax hikes?

I don’t think you will be typical though. A thread a few weeks back on here was flooded with people on huge salaries saying that it was completely normal at that level to only have to work a couple of hours a day in higher-paid jobs because you’re being paid for your expertise rather than your time.

They aren’t all working themselves into the ground desperate for more time with their families. You may be, but it seems that many others who have climbed the career ladder have very leisurely lives. I’m well paid but have a pretty full on job (Assistant Headteacher in a school) but lots of people on similar salaries said they worked very few hours.

I have some shares that I have had for years, not intending to sell though, that's the only thing that may attract more tax that would affect me, I already draw my pension. Inheritance tax, I will be dead anyway so doesn't really matter. DS will just get what he gets when the time comes.

What have they announced will actually be changed? Until an official announcement it is hard to make any plans.

Capital gains tax and inheritance tax I see are ripe for changes. Neither affects me at the moment. Might get affected by inheritance tax changes but my parents are in good health so no foreseeable inheritance.

VAT on school fees does not affect me.

Fuel duty increase, that would have an effect, both in terms of fuel I use and also increase in cost of goods.

My parents are anticipating that the thresholds for IHT (currently basically £1mil for a married couple) might come down so are starting to give away more during their lifetime in tax efficient ways.

I don't have a problem as a beneficiary with paying IHT- I didn't earn the money. However, they have a problem paying it as they worked hard for it with the idea of building something for their kids & grandkids and don't want to hand it over to the taxman. So I totally understand why they would want to do it & I'll probably feel the same when I hit my 60s

I’ll be moving country.

There will be no changes to income tax, NI, or VAT. And your current income is presumably not based on people dying regularly.

That leaves CGT, booze, and fuel duty. You're going to up sticks to another country purely because you (might) have to pay 45% instead of 28% on capital gains, and another 2p per mile to get around and 20p on a glass of wine? And without those changes you would have been perfectly happy to stay in the UK?

Righty-ho. Let us know when you get there.

Who uses the phrase "tax hikes" in normal conversation? Can't CCHQ find someone who sounds like a real person to start these threads?

Why don’t you trust them? What have they done with your tax receipts before?

We will wait and decide after the October budget. We are a fairly high income household but changes in CGT or private school fees have no impact on us. There’s no huge pension waiting and the inheritance is wrapped up in a trust. I think the main issue would be income tax changes and I read something about the personal allowance changing. That would impact me negatively for sure.

If you cannot post in a constructive manner, please feel free to post elsewhere.

The CCHQ line is oh so boring.

I don’t think you will be typical though. A thread a few weeks back on here was flooded with people on huge salaries saying that it was completely normal at that level to only have to work a couple of hours a day in higher-paid jobs because you’re being paid for your expertise rather than your time.

They aren’t all working themselves into the ground desperate for more time with their families. You may be, but it seems that many others who have climbed the career ladder have very leisurely lives. I’m well paid but have a pretty full on job (Assistant Headteacher in a school) but lots of people on similar salaries said they worked very few hours.

Do you genuinely believe that people on the internet are telling the truth and even if they are that this is widespread?

Their relationship with the unions is a pretty compelling reason.

Quite. And quite pathetic OP. Your ‘tax receipts’ mainly contribute towards pensions, healthcare and education. Shall we not bother with such fripperies?

Of course I don’t relish being worse off but continuing with a broken economy isn’t sustainable. I accept that I’m more fortunate than many and will have to pay more somehow.

Agree on every thread.

Behaviour change due to tax policy is going to happen, how much we'll see

Accusations every time from Labour such as that inevitable post wont change that

Ah, the unions. Without doubt the biggest problem facing Britain today. Hugh Scanlon. Joe Gormley. Arthur Scargill. Len Murray. Red Robbo. Enemies of the country, all of them.

Labour was literally founded as the political arm of the Trade Union movement. I was taught that in pre O level history 50+ years ago.

You may not like it but it's neither new nor news.

I don’t see any reason why they are less credible than all the people claiming they earn hundreds of thousands per year and saying that they are going to move abroad, quit their job, go part time, buy a house right next door to the outstanding school and price out all the people who are currently in catchment etc etc.

@EverythingAllatOnceAllTheTime. I am so confused. So you were happy with the way the last administration used your tax receipts, not limited to, but including, the £9.9bn wasted on unusable PPE? But you don't want the new government (who hasn't been in power for the last 14 years) to properly fund the basic services most of us rely upon? I am assuming you are "fortunate" enough to have private healthcare, privately educate your children and unlike me do not have terminal cancer and need to rely on a hospice which has just had to cut £1m from its budget because it relies on donations to fund over 75% of its vital services.

I agree that some tax spend is appalling. For example the fact that such a high percentage of working families are eligible for in work benefits because employers are not paying them a living wage. Frankly I am beyond furious that I as a tax payer subsidise high paid CEOs and shareholders. But you probably think that's a good use of your tax?

CGT and inheritance tax changes could affect me. But I will choose not to dispose of assets unless I need to - I can hold them for decades until a new government comes in or if I move abroad. With inheritance tax I expect there will be lots of advice if changes are confirmed. My dc aren't adults yet but we will likely pass on assets throughout their lifetime.

VAT on school fees affects us but we have accepted that as we are happy with their school. We paid for the 24-25 fees in advance but didn't want to pay for later years.

I won't. I'm a single parent to a mentally unwell child with my own home, earning a decent salary. I want properly funded services. I'm lucky enough to have been able to pay for some (not all) of my daughter's care needs, but I feel forced into doing this because NHS wait times are YEARS not months or weeks.

That's a broken society after 14 years of austerity. It won't be fixed overnight but funding is desperately needed across basic services and the only way to raise those funds is taxation or borrowing.

We've got used to low taxation, so of course it's a pain point. But do we really want a forced two-tier society where you HAVE to go private to get the care you need?

That doesn't reflect what I see around me in a corporate environment. There's flexibility in working hours (which is amazing when you have school-age kids) but also an always-on culture and an expectation of delivering against really tough deadlines which gets pretty stressful for everyone. I get a lot of late-night emails from colleagues right up to the most senior levels.

It also doesn't reflect what I see in friends who are senior consultants in hospitals - who are already being hit by VAT on fees and are in exactly the income-range which seem to be in Labour's cross-hairs for yet more tax.

We'll see, I guess. I'm just answering for myself, what I plan to do.

I do think there's a social change happening, which started with Covid and is still working it's way through. After furlough and time to reflect, lots of younger people made different work choices - which we see now in reduced working-age job participation and job vacancies throughout all industries. That's now working it's way into the professional workers, who are wondering why they are the only ones killing themselves working and paying ever-increasing tax to subsidise everyone else. Teachers are leaving in droves as that sense of entitlement in the population makes teaching hell. Doctors will be the last to fall, I think - they're idealistic, and really care about the NHS. But they're burnt out from covid, and like other professionals facing an increasingly unfair-seeming tax burden.

I'm not willing to be the last one putting everything of myself into a system which will fail just as I need it. Why lose the next decade working really hard to build up my pension when Labour are making it clear that they'll just take most of it in tax, and then use what's left as justification to deny me the state pension I've paid huge amounts of NI into my whole life?

I'll take the time and enjoy life now.

It’s true

Do you only read and listen to media and posts that are pro Labour?

Outside mn there's loads of criticism

Well said, and accurate.

Much of the BBC and FT readership appear to have pivoted away.

@EverythingAllatOnceAllTheTime it's very frustrating (though not surprising) that you are mainly replying to comments which support your stance. I'd love to hear your view on my last comment to you please. Otherwise what's the point in starting this thread if we are unable to share and exchange our views?