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GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
A101 wrote:GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
bennett123 wrote:A101 wrote:GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
I wonder how people work less to reduce their taxable income given it means reducing their 'real' income as well.
Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
A101 wrote:bennett123 wrote:A101 wrote:
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
I wonder how people work less to reduce their taxable income given it means reducing their 'real' income as well.
That exactly what some people do. They drop extra OT which has the tax bite that takes a fair portion of the extra hours worked to be really not much better off. It’s a trade off they might say bugger it. I have seen it happen
Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
Pampot70 wrote:Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
My understanding is that the tax rate takes effect only beyond the floor value of the bracket. So, for example a taxable income of £80,000 does not incur a tax of £32,000, but:
£0 on the first £ 12,570, plus
£7,540 on the next (50,270 - 12,570) = 37,700 at 20%, plus
£11,892 on the last (80,000 - 50,270) = 29,730 at 40%
Total, £19,432
At least it works like this here in Malaysia, with different brackets and tax percentages of course.
Pampot70 wrote:Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
My understanding is that the tax rate takes effect only beyond the floor value of the bracket. So, for example a taxable income of £80,000 does not incur a tax of £32,000, but:
£0 on the first £ 12,570, plus
£7,540 on the next (50,270 - 12,570) = 37,700 at 20%, plus
£11,892 on the last (80,000 - 50,270) = 29,730 at 40%
Total, £19,432
At least it works like this here in Malaysia, with different brackets and tax percentages of course.
flipdewaf wrote:A101 wrote:bennett123 wrote:
I wonder how people work less to reduce their taxable income given it means reducing their 'real' income as well.
That exactly what some people do. They drop extra OT which has the tax bite that takes a fair portion of the extra hours worked to be really not much better off. It’s a trade off they might say bugger it. I have seen it happen
Wouldn’t that then mean the the overtime was more likely to be worked by someone else who was at the lower threshold and this provide more balance in the system overall ?
flipdewaf wrote:No, I haven’t seen anyone turn down a pay rise because they move in to a marginal higher band on the earnings over 50k (seeing as they still get more cash in their pocket) it needs to be noted too that it’s also the same salary that NI reduced,
flipdewaf wrote:conveniently not mentioned when it doesn’t suit agendas though… . Its just like I don’t see people suddenly stop earning when they go over the 12.7k threshold too.
flipdewaf wrote:
I also only know 2 people who earn over 50k/annum who have the ability to work overtime, one works on the rigs and the other down a potash mine, neither of them complain about the higher tax band. It’s only internet trolls I’ve seen who do…
Fred
Sent from my iPhone using Tapatalk
A101 wrote:bennett123 wrote:A101 wrote:
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
I wonder how people work less to reduce their taxable income given it means reducing their 'real' income as well.
That exactly what some people do. They drop extra OT which has the tax bite that takes a fair portion of the extra hours worked to be really not much better off. It’s a trade off they might say bugger it. I have seen it happen
A101 wrote:flipdewaf wrote:A101 wrote:
That exactly what some people do. They drop extra OT which has the tax bite that takes a fair portion of the extra hours worked to be really not much better off. It’s a trade off they might say bugger it. I have seen it happen
Wouldn’t that then mean the the overtime was more likely to be worked by someone else who was at the lower threshold and this provide more balance in the system overall ?
That depends on the company and how they pay there staff. The people I am talking about the workers are all on the same entitlements, do all of the knock back OT nope but there are people who do because of the reason I said above. The extra work done and the extra take home pay they have said no to the OT as it was not worth it
A101 wrote:flipdewaf wrote:No, I haven’t seen anyone turn down a pay rise because they move in to a marginal higher band on the earnings over 50k (seeing as they still get more cash in their pocket) it needs to be noted too that it’s also the same salary that NI reduced,
Did I say anything about knocking back a pay rise?
flipdewaf wrote:conveniently not mentioned when it doesn’t suit agendas though… . Its just like I don’t see people suddenly stop earning when they go over the 12.7k threshold too.
Nothing has been conveniently left out because I am not in the NI so my conversation is about England. And we are talking about those that are in the second highest tax rate not lowest
A101 wrote:flipdewaf wrote:
I also only know 2 people who earn over 50k/annum who have the ability to work overtime, one works on the rigs and the other down a potash mine, neither of them complain about the higher tax band. It’s only internet trolls I’ve seen who do…
Fred
Sent from my iPhone using Tapatalk
Well if you only know of two people out of how many million will be on the tax rate then how do you know of others situation and it does not happen.
I have personally know that it happens
Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
moo wrote:Aaron747 wrote:Who's the idiot who designed that banding? Must be a lot of people and employers making sure income hits a ceiling at £50,190.
The same idiots who put in place, and then lowered, the pension fund life time allowance, which is why a lot of older doctors are retiring from the NHS early - because if they dont, they can get hit with a huge tax bill.
The life time allowance is the maximum amount you are allowed to accrue in your pension fund before you receive a tax bill - this is separate from the tax you have to pay when drawing down on the fund during retirement, and it can leave people with a sudden and unexpected tax bill in the tens or even hundreds of thousands of GBP.
This life time allowance is currently set at £1,073,000. Which actually isnt all that much to accrue when you consider a working life of 50 years and good fund management.
The tax bill is triggered in one of several ways:
- you start drawing down on your pension
- you reach the age of 75, regardless of whether you are drawing down on your pension
- taking a lump sum from your pension
- transferring your pension over seas
- you die
When the tax is triggered, you have to pay either 55% of the excess (so a pension pot of £1,250,000 will see you with a tax bill of ~ £100,000) or 25% of the excess plus any normal income taxation if you take the excess as income (so if you take the £200,000 excess as income, then you pay the higher rate tax on it plus an additional 25%). The average tax bill for people in this situation is a £40,000 lump sum.
As being part of the NHS pension scheme is a contractual requirement for NHS doctors, and as the government control both the pension contribution rate and the pension fund itself, the only way you can avoid the issue is by working less or not working at all - as you are required to have either a second state pension (SERPS) or an equivalent, then any work will contribute to the total pension fund that the lifetime allowance applies to.
This is causing huge issues in the NHS as older doctors are retiring well before they should, causing staff shortages across the board. And theres no end in sight.
Also of note is that the NHS doctors pension fund is vastly profitable, with the UK Treasury taking in excess of £6Billion a year from it in rebates. So the government is taxing the pension holder several times over... They get you coming, and they get you going.
flipdewaf wrote:The next election is truly lost now.
A101 wrote:GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
GalaxyFlyer wrote:So, you’re voting for the “clown show” but cannot take the risk their proposals come to fruition? Hmmm…
GalaxyFlyer wrote:So, you’re voting for the “clown show” but cannot take the risk their proposals come to fruition? Hmmm…
GDB wrote:https://www.youtube.com/watch?v=HZxPBCDwe5o
Kiwirob wrote:A101 wrote:GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
Yes it is and a cause to actually to work less to reduce your taxable income or move it offshore then governments receive little to no revenue from it
The people who move income offshore aren't those on a salary earning up to £150k, it's people who own business or are investors that can hide money, it's very hard to hide a salary.
GalaxyFlyer wrote:Worse, the 40% rate kicks in at USD 57,000, which is higher than any US rate. The 45% rate starts at USD 171,000-ish and you lose the personal, untaxed allowance of USD 14,000. It’s expensive.
moo wrote:GalaxyFlyer wrote:So, you’re voting for the “clown show” but cannot take the risk their proposals come to fruition? Hmmm…
“Would be”, not “am”.
Voted Lib Dems last time.
Couldnt care less what happens in the UK once the house is sold. Pensions and all other assets are already transferred, do my NZ citizenship ceremony next month.
Aesma wrote:Is there a potential well near your home ?
Aesma wrote:Is there a potential well near your home ?
Arion640 wrote:Aesma wrote:Is there a potential well near your home ?
Fracking is banned in the country I live in and that won’t change regardless of tonights vote. So little chance of that happening.
The government did not tell the Bank of England about its tax cut plans before the mini-budget, one of its deputy governors has said.
In the event, the mini-budget sparked market turmoil, with the Bank having to step in to stabilise pension funds.
The Bank could have advised the government on the possible market reaction, Sir Jon Cunliffe said.
Mr Hunt’s task is clear, if difficult. After the blunders of Mr Kwarteng and Ms Truss, Britain now pays a “moron risk premium” on its debt, in the words of Dario Perkins, a strategist at TS Lombard. Mr Hunt’s job is to remove it, and perhaps win a technocrat discount.
scbriml wrote:In case anyone thought this clown-show of a government couldn't possible get any worse...
The Home Secretary resigns over breaching government security rules having sent official government communications from her personal email account. She left no doubts about her view of the government's performance in her resignation letter.
https://www.bbc.co.uk/news/live/uk-politics-63309400
It also emerges the government hadn't even briefed the Bank of England about the disastrous "Mini Budget".
https://www.bbc.co.uk/news/business-63319567The government did not tell the Bank of England about its tax cut plans before the mini-budget, one of its deputy governors has said.
In the event, the mini-budget sparked market turmoil, with the Bank having to step in to stabilise pension funds.
The Bank could have advised the government on the possible market reaction, Sir Jon Cunliffe said.
scbriml wrote:Arion640 wrote:Aesma wrote:Is there a potential well near your home ?
Fracking is banned in the country I live in and that won’t change regardless of tonights vote. So little chance of that happening.
So perhaps you can entertain us by explaining your reasons for your original post on the subject?
GalaxyFlyer wrote:American politicians breach security rules and it’s no big deal IF of the correct political bent