Originally posted by Lance
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Ir35 calculator to know when its not worth it to work
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Down with racism. Long live miscegenation! -
Originally posted by NotAllThere View PostThank you for an unrealistic, contrived and pathalogical example. Back in the real world, the redistribution goes to Bobs 1-100. They each get 30p more (the other £30 pays for roads, civil servant salaries etc.). They have £100.30 and you have £140. You're better off. And none of you can afford the wine.
There are some rare cases in real life where it works out that you are in fact worse off if you earn a bit more. But they're rare and tend to be caused by boundary conditions. Once you're away from there, more income == more income. Even with redistribution.
I wouldn't be on £200 a day. I'd be on £800. £600 for one contract £200 for the other. And I'm still better off than you by £110. The whole "it's so unfair" relies on contrived examples and only looking at the marginal rate. We live in a progressive taxation regime - this is what you get. What the government could do which would stop the hard-of-thinking whining, is publish tax rates as a percentage of total income.
If on a daily rate, £100 were tax free, the next £500 at 25% and everything above that 50%, you end up with:Oh no, I'm earning 800, he's earning 600. I pay 7% more tax than him. How terribly unfair...Daily Rate % Take home 100 0% 100 200 13% 175 300 17% 250 400 19% 325 500 20% 400 600 21% 475 700 25% 525 800 28% 575 900 31% 625 1000 33% 675 1100 34% 725 1200 35% 775
So really your £800/day end up in your pocket to £350-400/day but as I said before, on high income it's not such a problem to end up with half of it.
I'm sure you'll still feel your work is valued with a take-home of almost £50/h. The story would be different on £200/day because then your take home would be about £13/h, and you'd probably earn more being a deliveroo driver or something of that sort.
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Originally posted by cwah View Post
Your calculation is completely out of touch.
Anyway - you go ahead and whine and commiserate with your buddies about how every £1 you earn extra you only get 5p. Those of us who've reconciled ourselves that change is unlikely, that short of becoming Chancellor, there's nothing we can do about it, will simply continue to generate more income for ourselves.
I think there's nothing to add to this thread. Life's unfair. All systems of taxation are unfair. As are all systems of government. Thread locked.Down with racism. Long live miscegenation!Comment
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