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A Million More To Pay Higher Rate Tax Due To Coalition's Budget Changes


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http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9239563/A-million-more-to-pay-higher-rate-tax-due-to-Coalitions-Budget-changes.html

Figures published by the tax office show that almost a third more workers will pay tax at 40pc or more during this financial year than paid it three years ago, taking the total number of high-rate payers to 4.1m. Just over 300,000 of these people will pay the 50pc additional tax rate.

The increase in higher-rate taxpayers is due to reductions in the threshold for paying 40pc tax, in combination with so-called "fiscal drag", where tax bands do not move up in line with inflation, meaning inflation-linked wage increases push more people into higher rate tax bands.

The total number of taxpayers, however, is scheduled to fall this year, from 30.1m to 29.7m.

Even better news for some of these people, they pay more tax and if they are on a SVR they pay more interest...

Less money to spend on tat....

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http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9239563/A-million-more-to-pay-higher-rate-tax-due-to-Coalitions-Budget-changes.html

Even better news for some of these people, they pay more tax and if they are on a SVR they pay more interest...

Less money to spend on tat....

Not forgettting loss of child benefit for those with a net adjusted income over £50k

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1 in seven earns taxable over £41K.

DM talks about a "typical" mortgage of £200K.

thats 5 times earnings for a typical mortgage.

most "typical" mortgage payers then, are paying way over 5 times earnings.

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1 in seven earns taxable over £41K.

DM talks about a "typical" mortgage of £200K.

thats 5 times earnings for a typical mortgage.

most "typical" mortgage payers then, are paying way over 5 times earnings.

£200k sounds a bit high for the average mortgage, but then I would guess that most "typical" mortgage payers would be couples so that wouldn't be 5 times joint earnings.

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£200k sounds a bit high for the average mortgage, but then I would guess that most "typical" mortgage payers would be couples so that wouldn't be 5 times joint earnings.

it will be 5 times single when the sprogs arrive.

Not me suggesting £200K is typical.

The AVERAGE new mortgage is getting on for £150K

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it will be 5 times single when the sprogs arrive.

Not me suggesting £200K is typical.

The AVERAGE new mortgage is getting on for £150K

Given that the *average* house is only £160k, how can the average mortgage be £160?

Especially if the minimum requirement is to have a 25% deposit...?

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1 in seven what? 1 in seven PAYE taxpayers?

Are 15% of the UK workforce really earning over £41k pa? That seems quite high to me.

the workings are all in the article.

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Given that the *average* house is only £160k, how can the average mortgage be £160?

Especially if the minimum requirement is to have a 25% deposit...?

its just under £150K....many much higher mortgages are needed for London buyers of course.

and the DM or DE suggested that the "typical" 200K mortgage payer was paying much more this week with the SVR uplifts.

And of course, SMI, was adjusted to include up to 200K ( up from 100K I beleive) when the last PM raised the benefit levels for those struggling to pay. Government must have thought that 200K mortgage was typical too.

As you say, none of this adds up, but there you are....

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Well, they're reducing the top rate of income tax, but presumably have to get the tax from somewhere.

So, less tax from each individual but from a greater number of individuals. I expect somebody's done the sums.

Meanwhile people on huge salaries pay large sums less in tax. It's all good, if you belong to a certain select group.

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Well, they're reducing the top rate of income tax, but presumably have to get the tax from somewhere.

So, less tax from each individual but from a greater number of individuals. I expect somebody's done the sums.

Meanwhile people on huge salaries pay large sums less in tax. It's all good, if you belong to a certain select group.

I support a flat rate of tax with a high threshold (around £15k) but it means there are no avoidance schemes and dividends, CGT etc. No offshore options or company write downs. All tax is paid at the marginal rate. It means that someone on £30k is paying tax on half their salaries, minimum wagers, nothing. Someone on £100k paying tax on £85k on their salary. Merge tax and NI. NI's just another tax and your contributions don't guarantee you anything.

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http://www.telegraph.co.uk/finance/personalfinance/consumertips/tax/9239563/A-million-more-to-pay-higher-rate-tax-due-to-Coalitions-Budget-changes.html

Even better news for some of these people, they pay more tax and if they are on a SVR they pay more interest...

Less money to spend on tat....

...yes ..but this really shows up the Government's reduction of the higher rate from 50 to 45% as a farce while not adjusting the 40% and other rates...but they did take time to screw the pensioners....this is naive government ...can't believe Cameron was in PR ...or maybe he just would like to see Labour back in soon.... to finish off trashing the country... after all Gordo didn't quite finish us off...but I'm sure Ed the Ball and Ed of Red will...... :rolleyes:

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...yes ..but this really shows up the Government's reduction of the higher rate from 50 to 45% as a farce while not adjusting the 40% and other rates...but they did take time to screw the pensioners....this is naive government ...can't believe Cameron was in PR ...or maybe he just would like to see Labour back in soon.... to finish off trashing the country... after all Gordo didn't quite finish us off...but I'm sure Ed the Ball and Ed of Red will...... :rolleyes:

I suspect people creeping into the 40% rate and lamenting it will understand the the unattractiveness of the 50% rate and be glad to see it reduced.

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I support a flat rate of tax with a high threshold (around £15k) but it means there are no avoidance schemes and dividends, CGT etc. No offshore options or company write downs. All tax is paid at the marginal rate. It means that someone on £30k is paying tax on half their salaries, minimum wagers, nothing. Someone on £100k paying tax on £85k on their salary. Merge tax and NI. NI's just another tax and your contributions don't guarantee you anything.

This is exactly what I would love to happen. Simplify the whole sorry mess.

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I support a flat rate of tax with a high threshold (around £15k) but it means there are no avoidance schemes and dividends, CGT etc. No offshore options or company write downs. All tax is paid at the marginal rate. It means that someone on £30k is paying tax on half their salaries, minimum wagers, nothing. Someone on £100k paying tax on £85k on their salary. Merge tax and NI. NI's just another tax and your contributions don't guarantee you anything.

I agree, but what would this rate work out at? Probably around 50%.

Would you also scrap corporation tax?

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I support a flat rate of tax with a high threshold (around £15k) but it means there are no avoidance schemes and dividends, CGT etc. No offshore options or company write downs. All tax is paid at the marginal rate. It means that someone on £30k is paying tax on half their salaries, minimum wagers, nothing. Someone on £100k paying tax on £85k on their salary. Merge tax and NI. NI's just another tax and your contributions don't guarantee you anything.

I fear that this proposal misses one advantage of a flat tax as it suggests a high threshold. The rate would have to be set higher than the current base rate due to the large reduction in taxpayers, and the fact that higher rate taxpayers would pay one rate.

Surely any flat rate should apply to all income? At least then you avoid complexity with people having several low paid jobs.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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