Citizens Inheritance

[11101]

But why? How could that happen? How does one person on 65k take home less money than another person on 40k, just because the former person has kids?

It's about total households rather than an individual person. I'll try and look back to the article it was in for the calculations but essentially at just the wrong income level and number of kids you can be on a 64% marginal tax rate alongside missing out on certain valuable pension benefits.

 

[Bert_]

It's about total households rather than an individual person. I'll try and look back to the article it was in for the calculations but essentially at just the wrong income level and number of kids you can be on a 64% marginal tax rate alongside missing out on certain valuable pension benefits.

Once you earn over £50k, the child benefit you're entitled to tapers off before being nullified completely at £60k. Becuase of our archaic system, you still get paid the full amount of chid benefit if you're claiming it, but your income tax rate is adjusted so that you "pay back" what you're no longer entitled to.

I assume that's what you're reffering to.

 

[Revan]

It's about total households rather than an individual person. I'll try and look back to the article it was in for the calculations but essentially at just the wrong income level and number of kids you can be on a 64% marginal tax rate alongside missing out on certain valuable pension benefits.

64% marginal effective tax rate is only for the monies between 100k-125k because you lose the personal allowance (in effect, for every 2GBP above 100k, you lose 1GBP of personal allowance which means than at 125K you lose it all). Effectively meaning that the effective rate there is around that number (instead of 45%).

But in any case, it is impossible in the UK to get a lower net salary if you have a higher gross salary. Unlike in Germany, for example.

What can happen though, is that 2 people in the same family earning X/2 gross can end with much more take-home money than a single income family where the earner earns X. Which can be argued to be a wrong policy.

 

[11101]

64% marginal effective tax rate is only for the monies between 100k-125k because you lose the personal allowance (in effect, for every 2GBP above 100k, you lose 1GBP of personal allowance which means than at 125K you lose it all). Effectively meaning that the effective rate there is around that number (instead of 45%).

But in any case, it is impossible in the UK to get a lower net salary if you have a higher gross salary. Unlike in Germany, for example.

What can happen though, is that 2 people in the same family earning X/2 gross can end with much more take-home money than a single income family where the earner earns X. Which can be argued to be a wrong policy.

If you're on 50-60k you can also get hit with an effective 60%+ marginal rate with child benefit tax charge taken into account.

Either way i cant find the original article i was referring to.

What he originally said is nonsense. A person earning £65k with 2 kids will have more take home pay than a single person on £40k. The single person isn't entitled to the child tax credits and child benefits so the fact that those are tapered off for the higher earner is a redundant point. Someone earning £65k will have roughly £15k more take home pay than someone earning £40k.

The mistake we are all making is trying to work out what we believe this poster actually meant without taking into account the fact that he's just a bit daft.

Are you still upset because you thought they test launched live nuclear missiles?

 

[P-Ro]

Are you still upset because you thought they test launched live nuclear missiles?

This is yet another clear example of you not being able to read properly. You made a ridiculous claim based on you misinterpreting something you'd read and now conveniently you can't find it because it shows that whatever it did say went right over your little head. A bit like those live nukes you imagined.

 

[T00lsh3d]

can we hear more about @Ady87’s top shagger dad.

Absolutely ruthless