I know very little about tax at the best of times, but I’ve received a letter from HMRC today basically telling me i’m now paying 40% tax on all my earnings above £34371.
That strikes me as a little bit low?
So not only am I having to endure a 15 year pay freeze (whilst my salary is eroded by inflation), it’s now no longer worth the effort of doing any overtime.

Thanks Tories.

So not only am I having to endure a 15 year pay freeze (whilst my salary is eroded by inflation), it’s now no longer worth the effort of doing any overtime.

I’m managing to dry my eyes for long enough to see the screen and type this message, but it’s quite an effort. Stay strong brave soldider!!

http://www.globalrichlist.com/

I appreciate your concern 🙂

Any other taxable perks?

i fail to see why its not worth doing overtime.

ok its not as lucrative as it once was but its still a net increase

they often state it as the amount of earnings over the tax free allowance… which would be about that much.

But it’s only 40% on anything above £34,371 so it’s still worth doing overtime.

It was 35k last year so not a big change. I feel sorry for those poor souls earning 150k

34k of TAXABLE income, so with tax free allowance – so probably 42kish of gross income before 40% starts (depending on benefits in kind etc).

It goes to show my ignorance on the subject, I always thought the threshold was more like £40k.

Bah.

My rant still stands.

I feel sorry for those poor souls earning 150k

Why?

If your’e earning that much then you’ll no doubt have a good account who will advise how you can spread your wealth and you’ll end up paying less tax on it.

thestabiliser – Member
34k of TAXABLE income, so with tax free allowance – so probably 42kish of gross income before 40% starts (depending on benefits in kind etc).

By Jove, I think you’ve just solved my problem.

Bah.

My rant has been diffused.

My rant has been diffused

I do like a diffused rant 🙂

They say a problem shared is a problem halved. Happy to help you out as it’s not a problem I ever expect to suffer.

The bit about 15 year pay freeze and my sarcastic remark about the Tories I still stand by 🙂

Your personal allowance is £8.3K, plus the 40% limit means that you are paying on above ~£42.6K. I wouldn’t expect to see too much sympathy for your rant! You can go below this if you pay more pension and it could make a difference for some benefits.

Random capitals and areas of utter incoherence would have improved it vastly. Hardly even a rant, diffused, solid or otherwise. 1/10.

My rant still stands.

That you earn a very good salary and it’s taxed?

@chojin – interesting excersize that you think that at 40% it’s not worth putting in extra effort, how about 45% or 50% here or in France 75% – do you now see the logic in the argument that at a certain point increasing taxes becomes self-defeating

@Teetosugers – if you earn £150k through PAYE an accountant cannot really help you, it’s a bit of an urban myth that higher earners have all sorts of wheezes to pay less tax on their income. Those with the most flexibility are people with their own companies (like BBC journalists and senior execs)

@ononeorange
I MeaN howOne is Supposed to rin two HOrsbixeswhilst funding theGlobalfiSHH unemploYED Sails into SUNset oFF a Meagre 1,000,000Lira a Day is Be4yon me. AfterALL prISOns these DAYSS are MORRE l|ImKLDOPJ Like hOlfiday CAMPSwith ALL tjeTeacchERS having PRizes For AL ItS NOWOnder THe yourngeer GEneration HASS No cCOmcepT OF LaYY DIana!!!

Better?

My rant has been diffused.

Your rant has been defused, not diffused, I hope.

Unfotunate fact of life, remember when only rich people paid higher rate tax? When I first started paying higher rate tax I was on very good money, now even folk in ‘normal’ jobs pay it…

Who’d have thought that coppers would end up paying 40% income tax on their pensions? See what I did there, started another thread, almost 😯

So not only am I having to endure a 15 year pay freeze (whilst my salary is eroded by inflation)

Have you considered looking for another job?

@BR two ways of looking at that – that top rate of tax is “too low” or that police should be very happy that their earnings and their pension is above the threshold. I believe I’m right in saying that only the top 10% of workers pay the top rate of tax, that makes the police very well paid no ?

As mentioned you won’t pay 40% and you can work plenty of overtime. I get a good wage and even with the overtime I did last year to pay for a nice holiday I didn’t pay 40%

Coppers pay 40% tax on their pensions 👿 !!!! B****y copper plated civil service pensions (do you see what I did there 😉 ).

I can sympathise with the feeling that when 40% of your wage disappears before you even get it you do feel a tad stung, but you’ve still got the other 60% and are therefore still better off than if you hadn’t worked for the extra. Does mean payrises don’t up your take home at the same rate as before, but as you earn more, salaries seem to go up disproportionately anyway.

You won’t get a lot of sympathy from those earning less as quite rightly from their perspective it’s a rather nice problem to have but when you feel you’ve worked hard for the extra income it does hurt to lose so much of it, especially as in reality the threshold has come down significantly in recent years.

As mentioned you won’t pay 40% and you can work plenty of overtime.

Why won’t he? I bloody well did.
HRMC have recoded me 4 times this year and cannot decide how much I owe them because of their own miscalculations. If they were a private company they’d be bankrupt. One govt dept which I won’t be crying about if they privatize it.

I can sympathise with the feeling that when 40% of your wage disappears before you even get it

That’s not how it works, you don’t pay 40% on the whole lot, there’s your tax free allowance and other bands to work through before they start taking 40% of anything left

I blame the CIA. They smuggled the threshold in to destabilise the region and then blame it on………..

Oh, sorry, wrong thread.

jambalaya

@BR two ways of looking at that – that top rate of tax is “too low” or that police should be very happy that their earnings

I don’t think its an ‘or’, but an ‘and’…

For me the top rate is far too low as people in normal jobs are paying upwards of 50% (income tax and NI) taxation on earnings, plus employers are paying another +12% of NI.

I think I do a damn site better job of spending my money than the Govt does.

There are three types of money:

1 My money spent by me on me – want quality and value
2 My money spent by me on a third party – want value
3 Someone else spending my money on a third party – want to be able to account for it…

thestabiliser – much better effort, well done. Almost totally unintelligible. I particularly like the lack of punctuation, although you lose one point for a full stop in there. 8/10. Keep it up!

…..only 40%! Sorry, but when I was little I remember my dad complaining about the tax he was paying (in The Netherlands). I never really looked into it, but I am pretty sure he mentioned a figure of 60%. And no, he did not earn a fortune…. He only had the occasional moan. At least someone was taking a higher % of his income than my mother 😉

The fact that you’ve had a 15 year pay freeze suggests you’ve been working for at least 15 years, yet you still haven’t grasped the very basics of how you get paid and what tax you pay?

‘Try putting your monthly deductions into grum’s link…

One benefit of 40% tax rate is if you have a private pension you get 40% tax relief on what you put in.

Well spotted there! I see that you eventually took into account the £8,105 personal allowance where you pay no tax whatsoever.

http://www.globalrichlist.com/

Not sure if I’m pleased with this or not.

I’m the 56,281,319 richest person on earth!

bruneep – you can’t be, I’m the 56,281,319th richest person on the planet!

Jeez…makes you think doesn’t it?

i’ve just read this and had a hear attack and an orgasm in one minute flat 😆

You shouldn’t put too much trust that globalrichlist site as it doesn’t take into account living costs. If you earn £25K a year “you are the 1%” – most people on this forum wouldn’t be able to survive on 25 grand a year in the UK (including me)