60% income tax rate

kennyboy66_2

misskool wrote: »

So they tax the high earners out of the country?

No one wants to pay tax and those that are in the high tax brackets will be able to move their country of domicile to somewhere that is more leniant towards their pound of flesh. The only winners in this announcement is the spin doctors that dreamt this up.

How many people left the country during the 1980's under Thatcher because of tax rates ?

ps the higher rate was 60%.

Despite all the ludicrous scaremongering, these budget changes put the UK in line with most of the OECD when you include social security contributions.

Unless of course everyone is going to move to Mexicio.

Watch out for the narco-terrorists if you are though.

kennyboy66_2

vivatifosi wrote: »

Exactly, those on £150k plus are those whose a) skills are likely to be portable to other economies with lower tax regimes and b) are more likely to have good accountants who can offshore some of it or find tax avoidance schemes. If enough of them do this then they could actually end up with a lower tax take than they would have got if they put it up to 45%.

They will have to be very clever accountants * if they can "offshore" normal earnings.

* breaking the law.

lostinrates

kennyboy66 wrote: »

Unless of course everyone is going to move to Mexicio.
.

DH's employers are indeed, strengthening their South American workforce.

lostinrates

vivatifosi wrote: »

Exactly, those on £150k plus are those whose a) skills are likely to be portable to other economies with lower tax regimes and b) are more likely to have good accountants who can offshore some of it or find tax avoidance schemes. If enough of them do this then they could actually end up with a lower tax take than they would have got if they put it up to 45%.

I don't know how easily this can be done for the ''just rich on earnings'' on PAYE.

vivatifosi

Sorry guys, not through PAYE, but through owning their own companies and doing it that way. I would imagine a fair few of those who are on over £150k pa are also the owners of the business.

kennyboy66_2

vivatifosi wrote: »

Sorry guys, not through PAYE, but through owning their own companies and doing it that way. I would imagine a fair few of those who are on over £150k pa are also the owners of the business.

To be honest, these tax breaks exist and are exploited at the moment, effectively converting income into capital gains.

I doubt if this change will actually push many others into this group.

Capital gains needs reforming - it is completely wrong that someone can pay an effective top rate of 18%

mitchaa

I have a close friend who earns around £400k pa (Championship footballer) I was chatting to him about this last night as i seen a comment on his facebook page digging in at A.D after his budget announcement.

I was winding him up that he was going to have an extra tax burden bill of £25k next year (£2k+ pm) he was not amused.

I wasn't aware though and i dont think he was either of the removal of his personal allowance so i guess that will be even more. 20% of £6475 = £1300.

I'll mail him and tell him the further good news if the maths is true Anyone confirm?

I cant see many people leaving the country to be honest. Why would they leave when they are wealthy enough to pay it and have family and friends here. A bit extreme to move country away from F&F just to save a few thousand in taxes.

hermanmunster_3

What will I do?

I will make sure that my pay does not go into the 100-113 K range, yay fewer hours at work - might even stop working nights!!!

StevieJ

mitchaa wrote: »

I have a close friend who earns around £400k pa (Championship footballer) I was chatting to him about this last night as i seen a comment on his facebook page digging in at A.D after his budget announcement.

I was winding him up that he was going to have an extra tax burden bill of £25k next year (£2k+ pm) he was not amused.

I wasn't aware though and i dont think he was either of the removal of his personal allowance so i guess that will be even more. 20% of £6475 = £1300.

I'll mail him and tell him the further good news if the maths is true Anyone confirm?

I cant see many people leaving the country to be honest. Why would they leave when they are wealthy enough to pay it and have family and friends here. A bit extreme to move country away from F&F just to save a few thousand in taxes.

He can always go and play in Belgium, France or even the Cayman Isles, don't fancy his chances of being better off though

lostinrates

hermanmunster wrote: »

What will I do?

I will make sure that my pay does not go into the 100-113 K range, yay fewer hours at work - might even stop working nights!!!

This isnt possible in all careers/employers. If it were available to DH, to have a £99,000 k salary on a restricted hour basis, by heck, I'd love it.:) I'd definitely be hoping he went for such an option.