60% income tax rate

baby_boomer

mewbie wrote: »

Scrap NI and put it on tax so we can see what's what..

Totally agree.

But only a chancellor sure of a second term will ever reform this crappy system .

At the moment we get election "promises" not to put up income tax and yet NI is the alternative and hits employment harder than non-earned income. Bizarre for a Labour government .

silvercar

You still pay income tax on dividends, though not NI. SO there is a benefit in receiving income as dividends, but not as much as some people think.

If your dividend income takes you over the 100k/ 150k threshold you are going to hit a tax rate hike, same as PAYE earners.

mitchaa

JasonLVC wrote: »

Almost all footballers worth their salt have companies to manage their image rights and sponsorships (that's a given), not just the foreign players and they also get paid for each goal they score (but again, paid via a Ltd Co., not directly so they can draw a dividend from the company rather than a salary) and the transfer fees have also been siubject to various tax tribunals in the past as well. Some footballers are not actually employed directly by the club but are employed via a ltd company again, so all income is paid as dividend rather than salary - dividends are not subject to the rules as a normal salary.

Okay - whilst I may have slightly excagerated about them not paying much more tax than an average Joe, the reality is they do not pay nearly anything near what you think they do.

Having a close friend as a championship footballer earning around £8kpw i can confirm he is taxed through PAYE.

Additionally, even top premiership players are. Top Liverpool player on £1.5m+ pa

http://www.metro.co.uk/sport/football/article.html?in_article_id=73705&in_page_id=43

Clearly PAYE aswell.

Eyesparky

Has it been confirmed that the 40% rate will kick in at £35K rather than simply paying 20% on the initial circa £6K and the 40% band earning point being consistent for everyone earning over this amount. Nothing is ever clear with budgets under New Labour ... I am still wondering what will come out over the next few weeks from the small print which usually hides all kind of nasty twists and turns that trickle out when the media has lost interest in reporting on the budget.

This tax hike will raise nothing but is merely a typical them and us piece of jingoism from the Government ... a bit rich considering how deeply their snouts are in the trough. When are Labour voters going to realise that Labour politicians are "them". Also, when are they going to learn how percentages work. The top 1% pay circa 38% of the income tax burden in this country with the top 10% covering circa 56% of the load currently. If I hear the word "fair" or the phrase "it's about time they paid their share" again I will likely explode. As a piece of spin from our overlords in power it worked a treat though didn't it?

Rochdale_Pioneers

Eyesparky wrote: »

This tax hike will raise nothing but is merely a typical them and us piece of jingoism from the Government ... a bit rich considering how deeply their snouts are in the trough. When are Labour voters going to realise that Labour politicians are "them".

Well they have a choice between Labour ministers whose ministerial salaries make them "them". Or Tory Shadow Ministers who work only part time as MPs and spend the rest of their time in the boardroom. Who are also "them"

You can't deny the us and them bit. 50% tax for the top 1%. 40% tax for the top 10%. Scary stuff for the 90% not on higher rate and with little prospect of getting onto higher rate....

Eyesparky

Rochdale_Pioneers wrote: »

Well they have a choice between Labour ministers whose ministerial salaries make them "them". Or Tory Shadow Ministers who work only part time as MPs and spend the rest of their time in the boardroom. Who are also "them"

You can't deny the us and them bit. 50% tax for the top 1%. 40% tax for the top 10%. Scary stuff for the 90% not on higher rate and with little prospect of getting onto higher rate....

Personally I can not abide the way they whip up a smoke screen of hatred against a section of society, that are highly productive and add hugely to the benefit of all of society, just to hide their inadequacy behind it. The politics of envy and hate disgusts me and history has born out time and again that the section of society usually whipped up by it end up suffering the most under it.

silvercar

The biggest goal for the government will be all the high earners maximising their income this year, to avoid the tax hikes next year. Should bring in a big bonus for the coffers.

bootman

Allowing the transfer of personal allowances from a stay at home parent to a damn hard working partner putting in a 14 to 16 hour day might soften the blow a little.

Why do people assume you must be rich if you earn around £100k! A take home pay of £4k a month if you are a main earner is not megga bucks if you are the only bread winner.

hermanmunster_3

loss of the personal allowance is a mega pain - does anyone know if I will get to keep allowances for professional subs? - this is currently about 5K a year?

thelawnet

bootman wrote: »

Allowing the transfer of personal allowances from a stay at home parent to a damn hard working partner putting in a 14 to 16 hour day might soften the blow a little.

Why do people assume you must be rich if you earn around £100k! A take home pay of £4k a month if you are a main earner is not megga bucks if you are the only bread winner.

Take home on £100k is about £5,400/month.