Nearly one million more people will be paying the higher rate of income tax even if the Tories raise the 40p tax threshold to £50,000 by 2020, the Treasury has admitted.
The forecast from HM Revenue and Customs shows 4.6?million people currently paying income tax at the 40 per cent rate, which starts at £41,900 a year.
40% marginal tax is obscene. Indeed, the amount of tax extorted from us is obscene anyway, however, to have to give the state 40p in the pound is something I flatly refuse to do. Being self-employed I have a degree of control. I can spend money on the business to keep my profits under the magic figure. Indeed, last year I managed to keep my profits down to half that despite a fairly high turnover simply by spending money on business expenses. That bike, for example, is a legitimate business expense. If it looked like I was creeping up to the 40% threshold, I would slow down my work to keep under it. My work involves getting up early, travelling long distances and carries a degree of pressure and stress. I’ll be damned if, having done that, I give nearly half of it to the greedy, grasping avaricious scum at hmrc.
Last week I was offered a very lucrative contract. I am still taking on the client, but I resisted the opportunity to take a fixed amount of work that would have taken me to over £50k per annum. Partly because I don’t want to do work for the same client five days a week, partly because I don’t want to work full-time and partly because I won’t go over that 40% threshold.
Cutting off my nose to spite my face? No – once I hit the 40% I have to work extra to earn each £ so it ain’t worth it. Besides, I can live well enough on much less and have more time to myself.
And, yes, I do realise that by the time you factor in other taxes and national insurance I am already giving the bastards around half my income.
+1
“…I am already giving the bastards around half my income…”
I doubt it: ‘giving’ suggests willingness. It would be more appropriate to say:-
“The bastards are stealing around half my income.”
True and I resent every penny, so will do my utmost to keep as much from them as I can.
Before you see it..
Income tax: 20%
Employee’s National Insurance: 12%
Employee’s National Insurace: 13.8%
After you get it:
Petrol/diesel Excise: 58p/litre
Tobacco Excise: 16.5% plus £3.68 per 20 fags, £9.02 per 50g baccy
Alcohol Excise: 11p per pint beer, just over 1p per ml on 37.5% spirits.
Then including all the above, after it’s been added of course:
VAT: 20%
Yup. Much more than half.
As my earnings amount to a small private pension and some part time work, there is NO chance of me ever making the 40% threshold. Indeed, this tax year HMRC owe me 14p. I now realise why I haven’t received one of those breakdowns of tax spending by our dear government! I think the time has come to keep a close eye on my work, and ensure that it doesn’t push me above the basic tax free figure for the year. It won’t stop the bastards ripping me off for VAT and fuel duty, but it’s the best I can manage…
You forgot the NI…
Er, no, I didn’t.
Well as I am officially a full time career and receive whopping £60.40 weekly for my 24/7 responsibilities £10.00 a week of which I lose to pay back the three weeks of child tax credit I claimed for my youngest child after I left his father and was the only money I had to survive on, and before I reclaimed and HMRC lost 2 forms and took 12 weeks to sort the claim and THEN told me they don’t back pay more than 4 weeks even though it was their cock up and I lost over 700£ that was owed to me. I don’t pay income tax now because I can’t work. but I still get clobbered in other ways, I don’t drive so I don’t hand over cash for that, I don’t drink so they get f all from me for that I do enjoy a fag or 20 so they get their pound of flesh for that and of course I get massacred on my gas, electric and food. Winter is comming and we are already having to do without meals to stay warm. If I ever return to work I sure as hell won’t be going back to a decent wage just to have it all stolen back and sent abroad in foreign aid as a gift in my name….B A S T A R D S.
I don’t drink or smoke, so deny them that, but I do get clobbered for duty on fuel, VED and the various purchase taxes.
Not quite.
IF the “higher tax band” had gone up with inflation, it SHOULD be somewhere North of £80k a year by now – & that would be fair.
But it hasn’t & it isn’t.