Employees earning £50k a year or more (approx) pay a lower rate of NI on earnings above £967 a week.
It goes DOWN from 12% to 2%
Employees earning £50k a year or more (approx) pay a lower rate of NI on earnings above £967 a week.
It goes DOWN from 12% to 2%
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I suspect the entire income tax/NI system is designed to be as baffling as possible, in the hope that people can't work out just how expensive it is. The fact that income tax figures are stated annually or monthly, while NI is stated as weekly amounts makes absolutely no sense otherwise.
I can't be bothered to check the figures, but I think the point at which NI drops is equal to or around the point at which income tax jumps up. So people paying the lower NI are paying the much higher income tax, so are paying a higher overall percentage than basic rate tax/NI payers.
It's all smoke and mirrors, basically they want to take as much as possible without you being able to work out just how much it is. I've occasionally heard discussions over the years about simplifying it, but it never happens, presumably as they know there will be uproar if people actually see the entire lot as a single massive percentage.
There was also going to be another new tax, possibly named new NI or something, supposedly for social care, but basically just income tax part 4. Unlike normal NI, this would be paid by pensioners. I don't know whether this got scrapped, unscrapped or what during all the summer/autumn nonsense.
I can't be bothered to check the figures, but I think the point at which NI drops is equal to or around the point at which income tax jumps up. So people paying the lower NI are paying the much higher income tax, so are paying a higher overall percentage than basic rate tax/NI payers.
It's all smoke and mirrors, basically they want to take as much as possible without you being able to work out just how much it is. I've occasionally heard discussions over the years about simplifying it, but it never happens, presumably as they know there will be uproar if people actually see the entire lot as a single massive percentage.
There was also going to be another new tax, possibly named new NI or something, supposedly for social care, but basically just income tax part 4. Unlike normal NI, this would be paid by pensioners. I don't know whether this got scrapped, unscrapped or what during all the summer/autumn nonsense.
Confirmation it's been scrapped (for now at least)...
www.gov.uk
This page has been withdrawn because it’s out of date. The Health and Social Care Levy will no longer go ahead.
From 6 November 2022, the temporary 1.25 percentage point increase in National Insurance rates is being reversed for the rest of the financial year.
The introduction of a separate Health and Social Care Levy tax in April 2023 has been cancelled.
[Withdrawn] Prepare for the Health and Social Care Levy
Find out about the Health and Social Care Levy including how it might affect your National Insurance contributions.
This page has been withdrawn because it’s out of date. The Health and Social Care Levy will no longer go ahead.
From 6 November 2022, the temporary 1.25 percentage point increase in National Insurance rates is being reversed for the rest of the financial year.
The introduction of a separate Health and Social Care Levy tax in April 2023 has been cancelled.
Unless you're rich.
Then they want you to get away with lots of soft treatment and cunning wheezes. That's what the complication is for. Did you know that Rees-Mogg pays NI at a lower rate than you do?
And on much of his income, no NI at all?
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I don't know anything about JRM's situation but my instinct is that it sounds like a sound-bite based on selective facts.
Many people work as effectively self-employed via a Limited Company - lots do this and don't pay any National Insurance at all. But their business instead pays corporation tax, then they pay dividend tax on what's left. It all amounts to much of a muchness, it used to save lots in tax but now doesn't, as these sort of loopholes have been closed, allowances decreased and other taxes increased over recent years - by both parties to probably an equal degree, so both have been clobbering the working wealthy and not so wealthy too.
So if that's what your shocking headline refers to then sorry to disappoint but there really isn't any massive injustice going on. Anyone else can do the same after spending £10 to form a company and doing their accounts every year. But the savings are minimal or possibly zero now.
Many people work as effectively self-employed via a Limited Company - lots do this and don't pay any National Insurance at all. But their business instead pays corporation tax, then they pay dividend tax on what's left. It all amounts to much of a muchness, it used to save lots in tax but now doesn't, as these sort of loopholes have been closed, allowances decreased and other taxes increased over recent years - by both parties to probably an equal degree, so both have been clobbering the working wealthy and not so wealthy too.
So if that's what your shocking headline refers to then sorry to disappoint but there really isn't any massive injustice going on. Anyone else can do the same after spending £10 to form a company and doing their accounts every year. But the savings are minimal or possibly zero now.
What shocking headline do you think you can see?
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You really are blinkered. Are you rich too ?
Your post contains exactly 0% information, the same as almost all of the abrasive blurts I've been reading in your posting history. If you aren't capable of actually discussing things like a grown-up then perhaps don't bother? You just keep lobbing insults at anyone.
I'm guessing you're young, angry socialists usually are. Most grow up and realise the world isn't as simple as they thought, but some do get left behind in the bitter quagmire of envy and hate. In fact I may have been one once, it's a rebellious phase that many go through while figuring out the world.
Go on, enlighten me with your genius... in what way am I blinkered, what great truth of wisdom and awakening am I missing? Should the state take everyone's money from them and **** it up the wall without question, and is it somehow wrong to question the authority of our glorious leaders? Go on, I'm willing to be educated and taken on this great journey of discovery, Power To The People...
Must go, the butler has the Port ready for evening tipples in the great hall. Jeez.
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No point trying again, I've explained it to you before.
But you go ahead and vote for who you want, it is your right.
If you shut down private schools ?
It will cost the state over 5
Billion a year to educate those children
Just said so on any questions on the radio
Also students from abroad come to some of these schools
We work in private schools and they are good payers
Blimey work in state sector schools they are all as tight as ducks back side
It will cost the state over 5
Billion a year to educate those children
Just said so on any questions on the radio
Also students from abroad come to some of these schools
We work in private schools and they are good payers
Blimey work in state sector schools they are all as tight as ducks back side
Sorry, yes I get it now. I thought you were saying that there was something specific about JRM. Now I understand, you're just using him as an example of a random rich person.
Income tax consists of several components. NI drops by 10% at the same level as "income tax" increases by 20%. So high earners pay a greater percentage of their income in tax than lower earners despite paying lower NI.
NI and "income tax" are all taxes on income, they just give it two different names to cover up how high it is.
Of course the reality is that really rich people probably pay less than everyone else as they take their income via all kinds of creative methods instead of just via a salary, but that's another subject. But the reduction in NI from 12% to 2% then nothing is only to counterbalance the bigger increases in income tax at the same levels.
You didn't do a very good job of explaining, I'm blinkered. Help me remove this blindfold, I want to join the angry revolution.
No, an example of a person with a high income.
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One of the biggest issues with the NHS is lack of staff on the payroll.
A lot are being paid silly money to come in and fill the gaps.
It shouldn't be like this.
A lot are being paid silly money to come in and fill the gaps.
It shouldn't be like this.
Why are you proposing to shut down private schools?
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