4 ms·

> Don't you pay something like 60% taxes for this? Noone pays 60% tax, the UK taxation is at a similar level to the US for most people, they will pay between a

> Don't you pay something like 60% taxes for this? Noone pays 60% tax, the UK taxation is at a similar level to the US for most people, they will pay between a 20% and 30% effective rate although there are progressive bands.

intunderflow 4y ago
The higher rate is 40% and that's before National Insurance Contributions, Student Loan Repayments through HMRC, Personal Allowance removal, etc To be fair folks in the US also have to pay for college, but to give an example of the typical situation in the UK: £55,000 loan on a 7.3% interest rate (it was going to be 12% but the government decided to reduce it https://www.bbc.co.uk/news/education-61765891 https://www.bbc.co.uk/news/education-61765891) in a country where the average income is £31,722 per year
- mrcartmeneses 4y ago
  It really depends when you went to uni. My sister had free tuition and a grant. I had a small tuition fee and student loans (totally 9k at below inflation interest rate, now paid off). New students are unfortunately likely to face the kind of debt and terms you describe. It’s a very sad situation. The conservative government have been running Britain into the ground since they took power after 10 years of very good governance by labour (reduced NHS waiting times, good economic growth, ability to deliver infrastructure projects in time and on budget, reduced crime, reduced child poverty, etc etc.) that was soured by the financial crisis. Then the conservatives grabbed power and shoved the country into reverse, doubling the national debt in the first four years through “austerity” policies designed to reduce spending that instead caused a double dip recession and negated any savings through reduced tax receipts. Then poverty and crime rose while the economy tanked and the social safety net and police and health services were gutted (my local area lost 1/4 of its police officers, for example). And all of that had to be blamed on Eastern European immigrants and Europe so we had Brexit. David Cameron has to go down as the worst prime minister in the history of Britain. He’s been a complete disaster on every front. The current clown is just a sick result of Cameron’s incompetence.
  - intunderflow 4y ago
    As a 2019 graduate I just feel lucky that I'm fortunate enough to be able to pay the whole thing off rather quickly. The same can't be said for everyone else in my cohort. Honestly I don't think they'll ever write Plan 2 loans off, these people will spend their entire life paying their 9% loan repayments, with no hope to ever pay off the total sums as they climb by 5% a year.
  - sph 4y ago
    Cameron was so terrible the British people keeps voting in his entourage. Imagine seeing May and Johnson as the saviour of the country. This is the same people that stopped voting Lib Dem because they lied, that time. How daft is that. The voting majority is completely irrational, however one tries to rationalise their behaviour (it was a protest vote!) I expect Tories to be voted in again next election.
- deleted 4y ago
  [deleted]
tebbers 4y ago
You will pay 60% tax if you earn salary between £100,000 and £125,000. It’s not a myth and has been around for years. Then add VAT at 20%, fuel duty (approximately 50% tax on the cost of fuel and the duty also has VAT added to it, so you’re taxed on the tax), vehicle excise duty, student loan repayments, council tax, National Insurance (which has just gone up by 25% as well) to that. https://www.buzzacott.co.uk/insights/exposing-the-60-income-tax-rate https://www.buzzacott.co.uk/insights/exposing-the-60-income-...
- blitzar 4y ago
  If you make £125,000 a year living in United Kingdom, you will be taxed £48,323. That means that your net pay will be £76,677 per year 48,323/125,000 != 60%
  - zwischenzug 4y ago
    It's the marginal rate, not the overall rate.
    - blitzar 4y ago
      Further, the 120,000th pound is taxed at 40%. The effective marginal rate of 60% comes from losing the 0% rate benefits for low earners on the 10,000th pound you earnt. The same thing also happens at 50,000 where you lose your child benefit government handouts, but funnily enough its less discussed yet the comparable rate is 65%.
  - mmarq 4y ago
    Now it’s 50K£, because the government increased NI. So you pay roughly 40%, which is quite a lot considering that if you want access to decent healthcare you have to pay privately. Also nurseries cost 2K£ per month and public education is extremely bad.
    - blitzar 4y ago
      40 is approximately 20 numbers (all the fingers and toes) smaller than the number 60. The education systems really is bad that I have to point this out.

intunderflow 4y ago

The higher rate is 40% and that's before National Insurance Contributions, Student Loan Repayments through HMRC, Personal Allowance removal, etc To be fair folks in the US also have to pay for college, but to give an example of the typical situation in the UK: £55,000 loan on a 7.3% interest rate (it was going to be 12% but the government decided to reduce it https://www.bbc.co.uk/news/education-61765891 https://www.bbc.co.uk/news/education-61765891) in a country where the average income is £31,722 per year

mrcartmeneses 4y ago
It really depends when you went to uni. My sister had free tuition and a grant. I had a small tuition fee and student loans (totally 9k at below inflation interest rate, now paid off). New students are unfortunately likely to face the kind of debt and terms you describe. It’s a very sad situation. The conservative government have been running Britain into the ground since they took power after 10 years of very good governance by labour (reduced NHS waiting times, good economic growth, ability to deliver infrastructure projects in time and on budget, reduced crime, reduced child poverty, etc etc.) that was soured by the financial crisis. Then the conservatives grabbed power and shoved the country into reverse, doubling the national debt in the first four years through “austerity” policies designed to reduce spending that instead caused a double dip recession and negated any savings through reduced tax receipts. Then poverty and crime rose while the economy tanked and the social safety net and police and health services were gutted (my local area lost 1/4 of its police officers, for example). And all of that had to be blamed on Eastern European immigrants and Europe so we had Brexit. David Cameron has to go down as the worst prime minister in the history of Britain. He’s been a complete disaster on every front. The current clown is just a sick result of Cameron’s incompetence.
- intunderflow 4y ago
  As a 2019 graduate I just feel lucky that I'm fortunate enough to be able to pay the whole thing off rather quickly. The same can't be said for everyone else in my cohort. Honestly I don't think they'll ever write Plan 2 loans off, these people will spend their entire life paying their 9% loan repayments, with no hope to ever pay off the total sums as they climb by 5% a year.
- sph 4y ago
  Cameron was so terrible the British people keeps voting in his entourage. Imagine seeing May and Johnson as the saviour of the country. This is the same people that stopped voting Lib Dem because they lied, that time. How daft is that. The voting majority is completely irrational, however one tries to rationalise their behaviour (it was a protest vote!) I expect Tories to be voted in again next election.
deleted 4y ago
[deleted]

tebbers 4y ago

You will pay 60% tax if you earn salary between £100,000 and £125,000. It’s not a myth and has been around for years. Then add VAT at 20%, fuel duty (approximately 50% tax on the cost of fuel and the duty also has VAT added to it, so you’re taxed on the tax), vehicle excise duty, student loan repayments, council tax, National Insurance (which has just gone up by 25% as well) to that. https://www.buzzacott.co.uk/insights/exposing-the-60-income-tax-rate https://www.buzzacott.co.uk/insights/exposing-the-60-income-...

blitzar 4y ago
If you make £125,000 a year living in United Kingdom, you will be taxed £48,323. That means that your net pay will be £76,677 per year 48,323/125,000 != 60%
- zwischenzug 4y ago
  It's the marginal rate, not the overall rate.
  - blitzar 4y ago
    Further, the 120,000th pound is taxed at 40%. The effective marginal rate of 60% comes from losing the 0% rate benefits for low earners on the 10,000th pound you earnt. The same thing also happens at 50,000 where you lose your child benefit government handouts, but funnily enough its less discussed yet the comparable rate is 65%.
- mmarq 4y ago
  Now it’s 50K£, because the government increased NI. So you pay roughly 40%, which is quite a lot considering that if you want access to decent healthcare you have to pay privately. Also nurseries cost 2K£ per month and public education is extremely bad.
  - blitzar 4y ago
    40 is approximately 20 numbers (all the fingers and toes) smaller than the number 60. The education systems really is bad that I have to point this out.