DOOM: Taxes

[vetran]

OK - fair points.

What I am try to say is that £150k may be a high income but it does not make make one wealthy.

Rishi+Hunt will undoubtedly hit earners a bit harder but I suspect they will take very little action on the wealthy.

it is the top tier of the top 1% earners. 321,000 people.

https://www.wsws.org/en/articles/201.../ineq-a17.html

I and assume most people on here are in the top 2-10% of earners, I consider myself very comfortable. I don't consider myself wealthy as I have to continue to work. That may change in the next few years. I know plenty of people with assets that don't need to work so you may be earning a good amount but not wealthy enough to retire.

[WTFH]

I am talking about the payroll taxes taken from what I bill from 100k to 120k. I’m not very good at percentages but I think these come to 79.something % (VAT, Income tax with no allowances, NI, Employers NI, apprenticeships). Please provide more accurate figures if you have them. It’s something like 20%, 60%, 3.25%, 13.8% and 0.5%.

I think this is supposed to be a bit higher in April and higher still after the next budget.

I’m not talking about the average amount of tax. Just what I would be paying on everything I earn at the point I pass the 100k threshold.

You're not really a contractor are you?
You're arguing that VAT is a tax that you pay.

If you are billing £100k annually, that's putting you on about £500 per day.
Pumping that in to: https://www.uktaxcalculators.co.uk/ir35/calculator/ (I'm am just using this for illustrative purposes to show that 80% tax on an inside gig is massively incorrect

Umbrella Company - Inside IR35
Contract Period Start: 11/04/2022
Contract Period End: 31/03/2023
Gross Charges: £122,500
Fees: £1,530
Expenses: 0
Employers NI on Gross Pay: £14,100.79
Subtotal £120,970
Gross Pay To Contractor: £106,804.72
Employees NI: £6,214.64
Income Tax: £29,186.8
Student Loan 0
Pension 0
Net Pay: £71,403.28


71403.28/122500 = 58.2% retained income. Not 20%.
(and that's not looking at being efficient with pensions, etc)

So, I've shown you my calculations, you show me your calculation that says it's 79% or 80%, and don't just put % down on a page, show what they are and why they apply.

[d000hg]

So can anyone tell me who created that vast debt in the first place...? And no, it wasn't Truss and Kwarten

A vast debt has been growing under several governments. But none of them caused the currency to plummet and interest rates to soar, which has made the real cost of the debt far larger and means a far larger part of the government budget must be spent there rather than elsewhere. That was done in about 24 hours by Liz. And the huge national debt didn't make your mortgage payments shoot up and your house sale fall through either.

[hugebrain]

So can anyone tell me who created that vast debt in the first place...? And no, it wasn't Truss and Kwarteng.

Incidentally, £50bn is quite a lot of money, but insignificant in the context of a £2tn national debt. Or about the same as the projected cost of HS2. Just sayin'.

Does that mean the deficit has gone down? It would be a lot of 50’s to make 2000, and I presume we haven’t been overspending madly for 40 years.

[hugebrain]

You're not really a contractor are you?
You're arguing that VAT is a tax that you pay.

If you are billing £100k annually, that's putting you on about £500 per day.
Pumping that in to: https://www.uktaxcalculators.co.uk/ir35/calculator/ (I'm am just using this for illustrative purposes to show that 80% tax on an inside gig is massively incorrect

Umbrella Company - Inside IR35
Contract Period Start: 11/04/2022
Contract Period End: 31/03/2023
Gross Charges: £122,500
Fees: £1,530
Expenses: 0
Employers NI on Gross Pay: £14,100.79
Subtotal £120,970
Gross Pay To Contractor: £106,804.72
Employees NI: £6,214.64
Income Tax: £29,186.8
Student Loan 0
Pension 0
Net Pay: £71,403.28


71403.28/122500 = 58.2% retained income. Not 20%.
(and that's not looking at being efficient with pensions, etc)

So, I've shown you my calculations, you show me your calculation that says it's 79% or 80%, and don't just put % down on a page, show what they are and why they apply.

That’s not the calculation I mean.

It’s Tuesday, I have earned £100,000 so far this year. I’m trying to decide whether to work tomorrow or stay home and watch the Cup. So my calculation is something like this.



But I’m not sure about what percent to take things off, for example is income tax 60% of a thousand or 60% of 832?

Anyway, it’s a lot, so I might as well stay home and watch the Cup. I would still need to pay the payroll people, my travel expenses etc. with the pittance I would get after tax.

[eek]

That’s not the calculation I mean.

It’s Tuesday, I have earned £100,000 so far this year. I’m trying to decide whether to work tomorrow or stay home and watch the Cup. So my calculation is something like this.



But I’m not sure about what percent to take things off, for example is income tax 60% of a thousand or 60% of 832?

Anyway, it’s a lot, so I might as well stay home and watch the Cup. I would still need to pay the payroll people, my travel expenses etc. with the pittance I would get after tax.

Wtf have you got that employer ni percentage figure from..

[malvolio]

Wtf have you got that employer ni percentage figure from..

Applying the annual tax to the weekly income?

[hugebrain]

Wtf have you got that employer ni percentage figure from..

I thought it was going up to that. I’m not up on the accounting though so likely to be wrong. If someone wants to do the correct calculation that would be great (although I don’t suppose we know the rates yet).

I think 75% is a lot better than the 80% I thought it was, if you can get it to be even lower then go for it.

[eek]

I thought it was going up to that. I’m not up on the accounting though so likely to be wrong. If someone wants to do the correct calculation that would be great (although I don’t suppose we know the rates yet).

I think 75% is a lot better than the 80% I thought it was, if you can get it to be even lower then go for it.

It was 13.8% it went up to 15.05% but returns to 13.8% from Sunday 6th

[WTFH]

It was 13.8% it went up to 15.05% but returns to 13.8% from Sunday 6th

And the 60% income tax rate? That’s a new one too!