View Full Version : 10% pay cut if you earn over £150k
Way to win the next election Ed! [lol]
There's no danger of me getting a pay cut then!
Totally shocked! I never new the labour party were socialists.
Dreaming up taxes that nobody will pay won't save the economy.
If you earn over £150,000 then I think 10% is more than affordable....
If you earn over £150,000 then I think 10% is more than affordable....
Possibly, but if it affected you would you vote for it? (Bearing in mind that anyone falling short of this earning level won't see a penny difference).
They are not exactly the millionaires they have been banging on about!
Is that strictly correct?, year 2013/2014 earners over £150k are taxed at 45%, Ed's proposal is for 50%.
Also your pay will not be affected in any way by Ed's proposal if you earned £250k you would still earn £250k, its just that the government will want a larger cut of it (50% of the earnings over £150k instead of the current 45%).
RagnarRocks
26-Jan-14, 09:42
Considering the top earners pay most of the tax I wouldn't call taxing them at 50% is a wise idea it just encourages them to go work elsewhere or find ingenious ways of avoiding paying tax.
Considering the top earners pay most of the tax I wouldn't call taxing them at 50% is a wise idea it just encourages them to go work elsewhere or find ingenious ways of avoiding paying tax.
It would certainly make them re evaluate their situation, perhaps moving to a more tax friendly country for their working years.
I think everyone should be taxed firmly and fairly. Absolutely no stashing it away in the cayman islands and no tax "avoidance" schemes to ensure you pay the exact amount of tax due on your earnings. Same with N.I. contributions. You can be sure if there are big earners claiming they have small incomes, then they are not paying their share of N.I either.
Wherever you work in the world, if you are a UK born citizen then makes no difference if you are in deepest, darkest Borneo or working on the moon, you will pay tax to the UK govt unless you have a residence status of that country (USA is an extreme abuser of this power forcing people living overseas to pay tax to the IRS).
As for paying the dreaded tax itself, salaries should be reported to the taxman at the start of the year and they will then issue a tax code ensuring tax paid at the correct amount for that year. Bonuses and extra payments should be dealt with at the end of the year and tax due paid in a lump sum before the bonuses or payments are paid to the worker.
Once all tax and N.I. due is paid in full, then and only then should tax refunds, deductions and write-offs and entitlements along with entitlements to any other benefits be considered and forwarded for inclusion in the following years tax code. That way the government should have a good idea of tax income for that year and be able to organise the budget a little better (fat chance in reality, but always worth hoping).
As for tax evasion, evil-doers should be jailed and stripped of all life assets whether legally obtained or not. Several countries do this at the moment so no reason why the UK should be any difference.
In a way we have it easy here in the UK :-
There's a few countries where in order to get a job, driving licence, passport, bank/deposit/savings account etc etc, you have to apply to the relevant government department and prove you are a tax-payer. No tax records = no job, no licence, no bank accounts, no perks! they have government provided "starter" jobs such as public services (street cleaners/labourers/manual workers) to get you on the payroll but that's it until you have a record of paying tax. Once you have your first year of tax records, you can then think about choosing a job you want to do other than the government provided one (one years notice btw)
Other countries have you apply through the government for a work permit. This ensures and proves that you are entitled to work and that no black work is done and all taxes are properly paid. They regularly check on places of employment to ensure all records are being kept. Citizens who do not have work permits are regularly called in for interview (interrogation) and rumours of disappearing "non-workers" who are most likely working for "cash in hand" are rife but they are in reality just whisked away for interrogation as to their job status and released after spending several weeks in jail whilst the process takes its due course
It's only a matter of time before cash is completely phased out and you can be sure that once this happens, the government will know of every penny you have,
where it came from and where it goes to. In the late 90's the govt tried to push for a start date for a cashless society, with 2020 being the probable date when all coins & notes would no longer be useable but that idea was shelved and nothing more said about it. The way things are going now, it looks like it has been secretly implemented and is right on track for a 2020 deadline.
How does the self employed declare their salary up front?
How does the self employed declare their salary up front?
I got Jimmy Carr to do mine. K Dodd & Associates, Knotty Ash, Liverpool are pretty good to. Don't try L Piggot and co. I've heard bad things about them.
How does the self employed declare their salary up front?
Hmm you got me there.....oh i know.....how about a basic startup tax bill of £0 due for the self-employed (possibly even based on minimum wage level of 13K) in the first year. If they make more than that amount then it's their tax code for the following year will take that into account
It doesn't take a degree in rocket science to implement a fair and just tax system
Hmm you got me there.....oh i know.....how about a basic startup tax bill of £0 due for the self-employed (possibly even based on minimum wage level of 13K) in the first year. If they make more than that amount then it's their tax code for the following year will take that into accountIt doesn't take a degree in rocket science to implement a fair and just tax system
So you have a poor year one = zero tax for year one and two
A great year 2 = big tax for year three
A terrible year 3 = out of business / bankruptcy in year 4
= no more revenue for hector
Of course it is up to the individual to be aware of theor tax iplications and budget accordingly as is the case now.
The current method of self assessment works ok
Stop being so picky and precise. If you want flawless and perfect answers on tax avoidance then go hassle the taxman :roll:
Any fool in self-employment who does not have the foresight to put money aside for future tax bills shouldn't be in business!
If Joe Bloggs had a bad year 1 but good year 2 then he knew fine well he had a tax bill to pay for year 2, and that he could also offset any losses from year one towards that tax bill. If he doesn't make money in year 3 then he is a fool to think he doesn't need to pay the tax due from year 2. If he goes bankrupt in year 4 then it's his own fault because he either didn't have a sound or good enough business or he just didn't have a clue what he was doing!
The current method of self assessment does not work ok at all. It is severely flawed and causes many an issue. Phantom tax bills, unreasonable demands, penalty notices and unreasonable hefty charges which are all due on a pay now and claim it back later basis.
My particular gripe with them was all due to a clown of an assessor at HMRC who couldn't add up. My accounts were spot on, i did everything by the book and after the tax bill, i had them checked and double-checked by my accountant and even verified by a chartered accountant friend as a favour who also said i didn't owe tax and was probably due some tax back too! Yet HMRC still said i owed money which i clearly and genuinely didn't and during the appeal process i got penalty charges, one for late payment and one for interest on a late payment on top of the tax bill which i didn't owe. I had to take out a loan to pay the bill and charges just to get them off my back. It took me 2 years to sort and even now 2 years AFTER i ceased self-employment, they are still demanding a return from me despite me being PAYE. Not to mention that they are still OWING ME money which i most probably will never see....
So tell me again that self-assessment still works ok!
RagnarRocks
26-Jan-14, 23:43
HMRC revenues from top taxpayers: 2011/12: £41.3bn (50% rate); 12/13: £41.6bn (50%); 13/14: £49.36bn (45% top rate).
In who's world is this tax a 10% pay cut?????? ducati, if you earn over £150 000 you will only pay the fifty pence tax on the amount over £150 000. So if you are currently earning 160k then you will be paying 50% of that 10k, around £1000 more per year! A £1000 reduction in your income will NOT equate to a 10% pay cut! Someone on 160k will take home nearly 8k per month if they are on straightforward PAYE, with no things like a company car or something. If this tax is implemented they will take home £7920 per month. Come on guys. Thats hardly going to send them screaming for the door out.
I would absolutely like to earn that money and I dont begrudge people earning that sort of money. But i wouldnt begrudge £80 quid a month as an extra contribution in times of austerity when some folks have to use foodbanks.
So why should you earn that kind of money, Ive been at the sharp end all my adult life, Falklands Veteran and 25 years a police officer (now happily retired) I get buy on my half of my pension after my ex took the other half and very happy. Dont come on this web site griping about such things as you will offend a lot of decent hard working people who would give their right arms to get anything like 150 k a bloody year end of.....
These Policepersons seem to be doing alright http://www.edinburghnews.scotsman.com/news/crime/police-chiefs-get-10k-pay-rises-amid-4-2m-cuts-1-3277776
RagnarRocks
27-Jan-14, 08:59
These Policepersons seem to be doing alright http://www.edinburghnews.scotsman.com/news/crime/police-chiefs-get-10k-pay-rises-amid-4-2m-cuts-1-3277776I wouldn't mind having a police pension my uncle and cousin where both policemen, both retired early and both live quite comfortably now, mind those who work in the public sector and have the gold plated pensions are usually the ones complaining the most
You know, the original post wasn't really about £ amounts or affordability. It was just highlighting the same old lack of imagination from Labour. They just posture and try to show why working people should vote for them. They never really achieve anything. They are talking about building 200,000 affordable homes per year now, yet in the boom years when we had the builders and the finance to do it, they only ever managed 175,000. As another dig at business and a sop to the good ole working person they are talking about confiscating 'banked' land. To do what? The reason it is banked is because the developers can't afford to build (or don't have the resources) so what are the labour government going to do with it? Their lack of understanding of basic economics seems to get worse.
funny you mention landbanking Ducati as apparently Tesco are the biggest culprit and own more land in the UK than any other supermarket company. Somewhere in the region of 350 sites or so compared to the other big 3 supermarket companies owning around 320 sites between them. Trying to get Tesco to build on them is just like asking Labour to build 200,000 new houses.....ain't gonna happen!
It's a vote buying smoke screen of the envious.
Not a penny of any 50% tax will make any of us richer, but it sounds good.
People forget that those who are wealthy can shop round for the best tax deals like we choose between Aldi & Tesco. If UK tax is too high, they go Belgium or Malta or wherever, we get 50% of nothing.
The balance has to be right, we need rich people, lots of rich people. The more rich people we have paying tax at the best rate, the less the liability is for us plebs.
Take the chips of your shoulders and apply logic.
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