I don’t fully get this 60% tax thing, as you don’t pay 60% tax, you just lose your tax allowance. Those over the £125k amount don’t suddenly go from 60% to 45%, as you have still lost your tax allowance? So why is it any different to the 100-125 range where the reduction happens?

It is still a shit position and made me stick bonuses into my pension, but it’s a great wage compared the the average in the country so I’m not complaining

    RichM Income taxes are too high and counterproductive. They should be taxing assets like second homes and accumulated wealth.

        Taxing wealthy pensioners like Grant is absolutely imperative to get us BACK ON TRACK.

          It is a 60% marginal rate Rich.

          You lose £1 of personal allowance for every £2 you earn. So for every £2 you earn an extra £1 is being taxed at 40%. which means that for every £2 you earn you pay an extra 40p tax. That is on top of the 40% tax you are already paying. Which brings you to 60%

          And yes, the crazy thing is, when you hit 125k, anything you earn over that is taxed at a lower rate.

          So either earn £199,999 (there is a massive pension cliff edge at £200k) or £99,999. The worst thing to do is do overtime in the £100-125k zone as you get taxed at 60% plus 2% NI

            benson so the allowance you lose is taxed at 40% but after 125k that allowance you have lost is taxed at a lower rate? As it’s still lost

            I would still rather earn £199k than £99k, yes you pay high tax but you are still taking home more money.

            I don’t mind paying tax, but wish it was spent better.

                alistair surely you can only tax on realised income / capital not unrealised gains? As then the system would be fucked.

                  This tax chat is off the chain!

                  RichM I would still rather earn £199k than £99k

                  You never!

                      Rich I’ve got one for you.

                      I’d rather have a billion pounds than a million pounds.

                      Smallman1 it sounds crazy i know, but some people seemed to be so focused on the tax I think they forget there is the money after tax which still goes up the more you earn.

                          Along_the_Wire still earning a decent whack consulting a few hours a week

                          “In my professional opinion, yes you are still a cunt. That’ll be 2 grand thanks.”

                            hugopal ’Granto’s Cuntsultancy Services PLC’

                            Made me lol I can’t lie!

                              Amps Look what happened to that fucking rodent. 🐀

                                303abuser
                                Didn’t he say that he knew nothing about project 2025 leading up to the election.

                                  Yeah he’s never hear of them. They just funded his campaign and happen to be implementing their right-wing-Christian-fundamentalist agenda at an alarming rate. The US is racing toward the tech bro version of the handmaid’s tale.

                                  RichM not true.

                                  This year if I earned 200001 I’d be paying about 5k more tax than if I earned 199999. All to do with tax on pensions. It’s horrifically complicated.

                                  So by earning more you take home less. Same goes for a lot of people who lose childcare at 100k. No kids for me so that is not an issue.