Backdated pay rise paid as lump sum, NI taken from months salary

penners324

SiliconChip said:

MattMattMattUK said:

SiliconChip said:

MattMattMattUK said:

penners324 said:

A good reason the government should have continued with thr plan to merge paye and ni together 

As much as it would make absolute sense it will never happen, it would raise the tax rate paid by pensioners and they are too big of an electorate demographic for any political party to raise taxes substantially on them. 

Plus of course high earners are only paying a marginal NI rate of 2% so the current government at least would never make a change that could hit their biggest supporter group harder.

How would that make any difference? The additional rate of income taxation would rise to 47%, which is the same as the current 45% IC + 2% NI.
The bands would effectively become:
Starting rate: 32%
Higher rate: 42%
Additional rate: 47%

So you don't think they'd take the opportunity to just add 12% to all current income tax rates? Your view of governments is more generous than mine!

Everyone should think that those are the tax rates. The whole 20%, 40% etc is basically nonsense