What is a good salary?

[halfmist]

I assume it is total tax not just income tax therefore pay VAT at same rate as someone on UC

Not quite sure of your point but if someone charges VAT on their labour the VAT element doesn’t form part of their income.

 

[halfmist]

Yep completely agree.

If Labour get in to power next year they have said they will not adjust income tax rates.
In their first budget it’s a dead cert they will correct this anomaly and tax capital gains at someone’s marginal rate of income tax.
You heard it first here.!

 

[oldius]

average tax rate is 44.8% for over 500k

Interesting. Is that what is paid, or what the tax rate is?
My information was the average tax rate paid by those earning over £500k.

 

[ganganvince]

Not quite sure of your point but if someone charges VAT on their labour the VAT element doesn’t form part of their income.

Wasn't my point it was @odius who posted it. I am assuming he is meaning total tax not just income tax therefore someone with £500k income would pay the same tax as someone on £20k on purchased goods bringing the overall average down. Although I could be reading it wrong.

 

[oldius]

There is an imbalance between income tax and tax on capital. Those who own the most tend to pay more tax on capital, which commands a much lower rate. Addressing this, as well as the monumental levels of tax avoidance, will massively help society.

United Kingdom - Tax Justice Network

taxjustice.net

 

[melrose40yarder]

The time has come to stop the ridiculous benefits bill this country has.
We as a society are obliged to look after Children,The Elderly and the Disabled physically and mentally.
If you want benefits you should be made to work for them picking up rubbish,Graffiti cleaning etc no one who is able to get out of bed should be getting anything for free.I have a mate who has 9 kids him and his wife have never claimed a penny apart from the child benefits.
Another mate thinks we are all mugs for working.There is something wrong with a system that allows this.

 

[halfmist]

The time has come to stop the ridiculous benefits bill this country has.
We as a society are obliged to look after Children,The Elderly and the Disabled physically and mentally.
If you want benefits you should be made to work for them picking up rubbish,Graffiti cleaning etc no one who is able to get out of bed should be getting anything for free.I have a mate who has 9 kids him and his wife have never claimed a penny apart from the child benefits.
Another mate thinks we are all mugs for working.There is something wrong with a system that allows this.

100% agree. You hear it time and time again “ I am not working for £40 quid a week. The amount claiming Disability Living Allowance or whatever it is called nowadays has increased massively over the last few years. There are some , not all, who see claiming benefits as a lifestyle choice topped up with a bit of cash in hand here and there.

 

[denislawsbackheel]

If Labour get in to power next year they have said they will not adjust income tax rates.
In their first budget it’s a dead cert they will correct this anomaly and tax capital gains at someone’s marginal rate of income tax.
You heard it first here.!

If Labour get in to power next year they have said they will not adjust income tax rates.
In their first budget it’s a dead cert they will correct this anomaly and tax capital gains at someone’s marginal rate of income tax.
You heard it first here.!

Good.
And dividend tax as well I hope.

 

[BrianW]

100% agree. You hear it time and time again “ I am not working for £40 quid a week. The amount claiming Disability Living Allowance or whatever it is called nowadays has increased massively over the last few years. There are some , not all, who see claiming benefits as a lifestyle choice topped up with a bit of cash in hand here and there.

DLA is now PIP. And if you qualify for it, you still get it even if you are the MD of a FTSE 100 company and work 70 hours a week. It is intended to meet the extra costs of being disabled, which are substantial.

As to the rest, the elephant in the room is that a major chunk of the 'welfare' bill is state pensions. What is paid to the unemployed is a relatively small sliver of the total, and if it was abolished completely tomorrow it would probably not make a massive difference to tax levels.

The real issue is to deal with the unemployable. For example, getting crack heads off their habit. Teaching people who can barely read and write the basic skills to do at least a basic job. While this is desirable and I am all for it, it would not save money in the short term but add to costs. It would be a good, long term investment though. But we don't do that stuff here. See also, rehabilitating prisoners.

 

[hillbillyliar]

My parents are of the opinion that things were 'just as hard'. They were working class - my mum a cleaner and my dad an electrician. We worked out that 90 weeks of net take home pay (all of it) would have bought their house, in Sale, outright. 90 weeks of average take home pay now would pay £45 - £50k. Things are simply not the same and my parents were shocked when I did the calculation.

BTW, their first house (council flat before) was £2750. My dad was on £31 a week take home pay.

Indeed. My dad, a regular teacher, bought a 4-bed semi in his early 30s. No 'bank of mum and dad', a wife without a salaried job + 3 kids.

We just sold the house for 380K. Could a person in the same situation today afford a 380K home?