60% effective tax band-advice needed 12 November 2022 at 12:05PM in Cutting tax 41 replies 1.6K views

Jeremy535897

I have never known Peston to be right, but I suppose there is always a first time. Apparently, according to Stanley Johnson, the leaders of countries are going to get together and allocate carbon emission allowances, with the result that there will be restrictions on things like leisure flights for the common folk, so the extra 4 million higher rate taxpayers the BBC predict won't miss the cash anyway.

Grumpy_chap

Jeremy535897 said:

I have never known Peston to be right, but I suppose there is always a first time. Apparently, according to Stanley Johnson, the leaders of countries are going to get together and allocate carbon emission allowances, with the result that there will be restrictions on things like leisure flights for the common folk, so the extra 4 million higher rate taxpayers the BBC predict won't miss the cash anyway.

I thought Peston had moved to ITV.

purdyoaten2

Grumpy_chap said:

Jeremy535897 said:

I have never known Peston to be right, but I suppose there is always a first time. Apparently, according to Stanley Johnson, the leaders of countries are going to get together and allocate carbon emission allowances, with the result that there will be restrictions on things like leisure flights for the common folk, so the extra 4 million higher rate taxpayers the BBC predict won't miss the cash anyway.

I thought Peston had moved to ITV.

He did - about five or six years ago. I was in hotel in London about five years ago and he was in the lobby on his mobile. I was instantly reminded of Columbo - raincoat, hair and general demeanour - and haven’t been able to get that image out of my head every time I see him. 

Jeremy535897

Grumpy_chap said:

Jeremy535897 said:

I have never known Peston to be right, but I suppose there is always a first time. Apparently, according to Stanley Johnson, the leaders of countries are going to get together and allocate carbon emission allowances, with the result that there will be restrictions on things like leisure flights for the common folk, so the extra 4 million higher rate taxpayers the BBC predict won't miss the cash anyway.

I thought Peston had moved to ITV.

Sorry, the two items were not actually connected. The BBC have reported the suggestion that the 4 million or so higher rate taxpayers might double to 8.5 million. You can see that Peston has been replaced at the BBC by equally knowledgeable reporters.

purdyoaten2

And so the leaks are out - practically the whole statement. 45% band to start at £125000 and, as discussed, those earning over £125000 will have a huge £140 taxed at an effective rate of 65% (£125000 to £125140). Unless, of course, the personal allowance is reduced to 12500.  

Grumpy_chap

Maybe the 45% won't start until £125,141?

purdyoaten2

Grumpy_chap said:

Maybe the 45% won't start until £125,141?

Maybe - but you’re presuming that they have noticed!

Grumpy_chap

The civil service will have noticed.

Whether Rishi and Hunt listened is another thing.  They will have the budget to correct it in March though, perhaps through an adjustment in the thresholds.

Also, wouldn't the effective rate be 67% when NI is considered as well as IT?

I assume IT change can only apply from April 

purdyoaten2

Grumpy_chap said:

The civil service will have noticed.

Whether Rishi and Hunt listened is another thing.  They will have the budget to correct it in March though, perhaps through an adjustment in the thresholds.

Also, wouldn't the effective rate be 67% when NI is considered as well as IT?

I assume IT change can only apply from April 

Yep - 67% including NI - unless the rate changes yet again!

purdyoaten2

purdyoaten2 said:

Grumpy_chap said:

The civil service will have noticed.

Whether Rishi and Hunt listened is another thing.  They will have the budget to correct it in March though, perhaps through an adjustment in the thresholds.

Also, wouldn't the effective rate be 67% when NI is considered as well as IT?

I assume IT change can only apply from April 

Yep - 67% including NI - unless the rate changes yet again!

Wow - didn’t see that CGT exemption cut coming!