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> he mentioned he's getting taxed at 48-50% on top of this. The highest income tax bracket is 45%, and you only pay that rate of tax on the money you earn past
by JimDabell 3y ago
> he mentioned he's getting taxed at 48-50% on top of this.
The highest income tax bracket is 45%, and you only pay that rate of tax on the money you earn past £125k – you don’t pay that rate on your entire income.
- c7THEC2DDFVV2V 3y agothats incorrect. you lose your tax free allowance, which is a furtger 12,500 tax paid. Plus you need to consider graduate tax and the interest on those 'loans' which currently sits at 4.5%
- dukeyukey 3y agoBut you're still only paying the lower rates on income until you hit £125000, and at that income those student loans aren't gonna exist for long.
- c7THEC2DDFVV2V 3y agothey will exist for a while because you need to get to that level in your career. People rarely leave uni and get 100k+ jobs. If you leave uni and find a job paying at 50k and you get increases of 2.5% each year, it will take over 20 years to repay.
- blitzar 3y agoIts an even higher tax rate if you buy 50,000 of drugs with your money and call it a heroin tax.
- c7THEC2DDFVV2V 3y agowhat on earth?