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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 (approxima
by 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 agoIf 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 agoIt's the marginal rate, not the overall rate.
- blitzar 4y agoFurther, 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 agoNow 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 ago40 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.
- ditn 4y ago60% _marginal_ tax, not everall.