ml1dch Posted November 17, 2022 Share Posted November 17, 2022 1 1 Link to comment Share on other sites More sharing options...
ender4 Posted November 17, 2022 Share Posted November 17, 2022 Any ideas why the higher income tax rate now starts at £125,140 rather than £125,000. Whats with the very specific extra £140? Link to comment Share on other sites More sharing options...
Genie Posted November 17, 2022 Share Posted November 17, 2022 8 minutes ago, ender4 said: Any ideas why the higher income tax rate now starts at £125,140 rather than £125,000. Whats with the very specific extra £140? MP’s are probably on £125,000 (I know they aren’t). I don’t know the answer either. 1 Link to comment Share on other sites More sharing options...
bickster Posted November 17, 2022 Moderator Share Posted November 17, 2022 14 minutes ago, ender4 said: Any ideas why the higher income tax rate now starts at £125,140 rather than £125,000. Whats with the very specific extra £140? I had the exact same thought when I saw that one. No clue either. Link to comment Share on other sites More sharing options...
Genie Posted November 17, 2022 Share Posted November 17, 2022 Just now, bickster said: I had the exact same thought when I saw that one. No clue either. I did have a second thought about cabinet ministers… I suspect the MP salary and the extra for being in the cabinet is actually quite close to £125k (pure coincidence I’m sure). Link to comment Share on other sites More sharing options...
bickster Posted November 17, 2022 Moderator Share Posted November 17, 2022 3 minutes ago, Genie said: I did have a second thought about cabinet ministers… I suspect the MP salary and the extra for being in the cabinet is actually quite close to £125k (pure coincidence I’m sure). Nah it's much higher, rough figures 90k for MP, another 65k for Cabinet minister, though junior ministers (Non-cabinet) are much closer I think But even if it was that, the cost would only be 5% of £140 = £7 Link to comment Share on other sites More sharing options...
ml1dch Posted November 17, 2022 Share Posted November 17, 2022 1 hour ago, ender4 said: Minimum Wage up to £10.42 Benefits increase in line with inflation at around 10% Extra windfall taxes on energy firms raising £14 billion next year and £50 billion over next 4 years Lowering income tax threshold to £125k when you start paying 45% Capital gains and dividend tax starts to be paid earlier Energy price cap extended after April at £3,000, with extra help for low income households Are they a Labour govt in disguise lol It's very thoughtful of them to say "we're going to spend all this money, and we'll budget for the really painful cuts needed to pay for it to be made sometime just after the next General Election. Whichever of the two parties might be in Government to implement them (wink, wink)" It's a budget with one thing in mind, the Tory party's chances in the 2029 election. Link to comment Share on other sites More sharing options...
sidcow Posted November 17, 2022 VT Supporter Share Posted November 17, 2022 1 hour ago, bickster said: Well quite but this bit... Fills the "Black Hole" The rest of the rises are for what exactly? HS2 Link to comment Share on other sites More sharing options...
sidcow Posted November 17, 2022 VT Supporter Share Posted November 17, 2022 The £140 will be something do do with the bands won't it? Probably see rounder figures for the gap between when you start paying to middle band then rounder figure between middle and high band. Link to comment Share on other sites More sharing options...
sidcow Posted November 17, 2022 VT Supporter Share Posted November 17, 2022 I assume if people aren't happy with paying tax from £125,000 they will just have to get off their arse and find that new higher paid job won't they! 2 Link to comment Share on other sites More sharing options...
Genie Posted November 17, 2022 Share Posted November 17, 2022 8 minutes ago, sidcow said: HS2 I suspect it’s so far down the line now (no pun intended) that if someone decided to cancel it then it would probably cost billions to wrap it up so we may as well keep going. Boris had a long look at scrapping it didn’t he and backed away from it (some small amendments were made). Link to comment Share on other sites More sharing options...
sidcow Posted November 17, 2022 VT Supporter Share Posted November 17, 2022 Just now, Genie said: I suspect it’s so far down the line now (no pun intended) that if someone decided to cancel it then it would probably cost billions to wrap it up so we may as well keep going. Boris had a long look at scrapping it didn’t he and backed away from it (some small amendments were made). Yeah I know. Was just a joke as loads of people (mainly very uninformed people) think it's a waste of money and Bicks was musing where all the other money was going to. 1 Link to comment Share on other sites More sharing options...
Genie Posted November 17, 2022 Share Posted November 17, 2022 1 minute ago, sidcow said: I assume if people aren't happy with paying tax from £125,000 they will just have to get off their arse and find that new higher paid job won't they! I want a job patrolling French beaches for migrants. £63m divided by 300 people is over £200k each. 1 Link to comment Share on other sites More sharing options...
Wainy316 Posted November 17, 2022 Share Posted November 17, 2022 1 hour ago, ender4 said: Any ideas why the higher income tax rate now starts at £125,140 rather than £125,000. Whats with the very specific extra £140? It's just for correlation purposes as £125,140 is the exact earnings point at where no Personal Allowance would be available. 1 1 Link to comment Share on other sites More sharing options...
Wainy316 Posted November 17, 2022 Share Posted November 17, 2022 (edited) E.g. Tax payers have a Personal Allowance of £12,570 per annum. This begins to reduce by 50p in the £1 once earnings hit £100k. If someone earns £105k then they lose £2.5k of their Allowance. £12,570 x 2 is £25,140. So at £125,140 they'd lose £12,570 of their Personal Allowance, i.e., all of it. Edited November 17, 2022 by Wainy316 4 Link to comment Share on other sites More sharing options...
ender4 Posted November 17, 2022 Share Posted November 17, 2022 (edited) 12 minutes ago, Wainy316 said: E.g. Tax payers have a Personal Allowance of £12,570 per annum. This begins to reduce by 50p in the £1 once earnings hit £100k. If someone earns £105k then they lose £2.5k of their Allowance. £12,570 x 2 is £25,140. So at £125,140 they'd lose £12,570 of their Personal Allowance, i.e., all of it. That makes sense. So what's the marginal tax rate (inc NI) between £100k and £125,140? £0 to £12k - 0% £12.5 to £50k - 32% £50k to £60k - 42% plus x% if you get child benefit? £60k to £100k - 42% £100k to £125k - ? £125k plus = 47% ? Edited November 17, 2022 by ender4 Link to comment Share on other sites More sharing options...
bickster Posted November 17, 2022 Moderator Share Posted November 17, 2022 8 minutes ago, Wainy316 said: E.g. Tax payers have a Personal Allowance of £12,570 per annum. This begins to reduce by 50p in the £1 once earnings hit £100k. If someone earns £105k then they lose £2.5k of their Allowance. £12,570 x 2 is £25,140. So at £125,140 they'd lose £12,570 of their Personal Allowance, i.e., all of it. WOW, I genuinely didn't know that this was what happened. Link to comment Share on other sites More sharing options...
AshVilla Posted November 17, 2022 Share Posted November 17, 2022 (edited) Energy price cap going up by an extra £500 is going to wound a lot of people considering many can't even afford to pay at the current rates. Edited November 17, 2022 by AshVilla Link to comment Share on other sites More sharing options...
Wainy316 Posted November 17, 2022 Share Posted November 17, 2022 9 minutes ago, ender4 said: That makes sense. So what's the marginal tax rate (inc NI) between £100k and £125,140? £0 to £12k - 0% £12.5 to £50k - 32% £50k to £60k - 42% plus x% if you get child benefit? £60k to £100k - 42% £100k to £125k - ? £125k plus = 47% ? Without factoring NI they call this the dreaded 60% tax rate zone as you're paying 40% income tax plus the 20% you're losing on the allowance. You can combat this by making larger pension contributions or Gift Aid donations. Link to comment Share on other sites More sharing options...
ender4 Posted November 17, 2022 Share Posted November 17, 2022 30 minutes ago, Wainy316 said: Without factoring NI they call this the dreaded 60% tax rate zone as you're paying 40% income tax plus the 20% you're losing on the allowance. You can combat this by making larger pension contributions or Gift Aid donations. So actually 62% once you take into account the 2% NI? Or do they not pay 2% NI at that income level? Link to comment Share on other sites More sharing options...
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