mj.scuba Posted January 31, 2011 Author Share Posted January 31, 2011 auto98uk, Alex C & truman - I thank you for the education and stand corrected. I've applied for a few jobs around the £40k mark lately so that is a bit of a relief! Link to comment Share on other sites More sharing options...
vinyl Posted January 31, 2011 Share Posted January 31, 2011 I thought it was the whole amount? Bloody hell. I'm glad you ain't my accountant. Link to comment Share on other sites More sharing options...
Dozy Posted January 31, 2011 Share Posted January 31, 2011 This seems really unfair.People would be better off on benefits at this rate,I am so glad that I am emigrating at the end of the year. If that was how the tax system worked, then it would be unfair. But it isn't, so it's not! Link to comment Share on other sites More sharing options...
vinyl Posted January 31, 2011 Share Posted January 31, 2011 If that was how the tax system worked, then it would be unfair. But it isn't, so it's not! Actually its how the VAT system works which IS totally stupid. Link to comment Share on other sites More sharing options...
mj.scuba Posted January 31, 2011 Author Share Posted January 31, 2011 Bloody hell. I'm glad you ain't my accountant. Thanks vinyl, suitably edited the OP now. Link to comment Share on other sites More sharing options...
BettyBooHoo! Posted January 31, 2011 Share Posted January 31, 2011 Where on earth is the incentive for people to work hard and do well in this country? The harder you try, the more you get screwed. No matter what you earn, I believe that tax deductions should be the same percentage for everyone. As a higher earner you'd still pay more but in line with everyone else. I think it's disgusting. There's no wonder we have so many lazy lay abouts. Link to comment Share on other sites More sharing options...
truman Posted January 31, 2011 Share Posted January 31, 2011 We've always used tax bands. The current system is something along the lines of 0-7k = 0% tax, 7k-40k = 20% tax 40k-100k = 40% tax 100k + = 50% tax but the tax is progressive - if you earn 60k you would be taxed 7k at 0%, 33k at 20% and 20k at 40%. Not 40% on the total. (figures are approx) I think the 40% starts at 37200..at the moment anyway.. Link to comment Share on other sites More sharing options...
vinyl Posted January 31, 2011 Share Posted January 31, 2011 A business that has a turnover of £68,000 can pay no VAT. A business that has a turnover of £71,000 is expected to pay £14,200 in VAT. So if you are a sole trader selling your labour, what is the incentive to expand beyond £69,999 because you would need to increase your turnover to almost £85,000 to earn an extra penny. That's an awful lot of hedges to cut. Link to comment Share on other sites More sharing options...
taxman Posted January 31, 2011 Share Posted January 31, 2011 A business that has a turnover of £68,000 can pay no VAT. A business that has a turnover of £71,000 is expected to pay £14,200 in VAT. So if you are a sole trader selling your labour, what is the incentive to expand beyond £69,999 because you would need to increase your turnover to almost £85,000 to earn an extra penny. That's an awful lot of hedges to cut. A VAT registered business will charge their customers VAT, they will also recoup the VAT they spent on purchases. Link to comment Share on other sites More sharing options...
L00b Posted January 31, 2011 Share Posted January 31, 2011 Incidentally, now would be a good time to remind thread-reading taxpayers concerned by this development, that -for those concerned, and many (most?) in that tax bracket will be- there is also the small matter of the NI contribution increasing by 1% and the extra NI contribution rate doubling in April 2012, and the withdrawal of the child allowance in April 2013. For now. Link to comment Share on other sites More sharing options...
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