Andy Burnham £1,301 charge on table for people living in homes worth £271k.

[UglyWithaSidePart]

Are you actually saying you turned down a promotion due to the possibility of paying more tax at some point in the future ? Even though you'd actually have a higher take home pay ?

Put your own arm around your own shoulder , walk to a quiet place and then have a quiet word with yourself.

There's a rather celebrated example of this at my final place of work. Lad was doing ok (cyber security, so he's not daft, apparently), was brought into Manager's office and offered promotion which included pay rise which would have taken him into the 40% bracket. None of the technicalities of this was discussed in the interview, but the lad/bloke said he's sleep on it.
Later on he turned it down with no reason but later confided with his team mates that "I'm not taking a promotion to pay more tax, I'll be worse off!".
😂😂😂

 

[Psamathe]

Or, non-exec director mentioned earlier in the thread (who just liked trying to be clever with weird financial games) proposed changing how I was paid when I was long term working remote from company offices (working and living in France). He really seriously proposed that, as he traveled to France several times a year we'd meet somewhere and he'd give me a suitcase full of cash. He knew the exact threshold for company cash withdrawal from banks that would not raise questions so they'd withdraw the cash, I'd meet him in an agreed car park in France and I'd get a suitcase full of cash!

I declined and shortly afterwards decided it was no longer the company I was a director of before resigning directorship and moving to France.

 

[Ian H]

Or, non-exec director mentioned earlier in the thread (who just liked trying to be clever with weird financial games) proposed changing how I was paid when I was long term working remote from company offices (working and living in France). He really seriously proposed that, as he traveled to France several times a year we'd meet somewhere and he'd give me a suitcase full of cash. He knew the exact threshold for company cash withdrawal from banks that would not raise questions so they'd withdraw the cash, I'd meet him in an agreed car park in France and I'd get a suitcase full of cash!

I declined and shortly afterwards decided it was no longer the company I was a director of before resigning directorship and moving to France.

"I'll need a bigger wallet."

 

[Pblakeney]

Or, non-exec director mentioned earlier in the thread (who just liked trying to be clever with weird financial games) proposed changing how I was paid when I was long term working remote from company offices (working and living in France). He really seriously proposed that, as he traveled to France several times a year we'd meet somewhere and he'd give me a suitcase full of cash. He knew the exact threshold for company cash withdrawal from banks that would not raise questions so they'd withdraw the cash, I'd meet him in an agreed car park in France and I'd get a suitcase full of cash!

I declined and shortly afterwards decided it was no longer the company I was a director of before resigning directorship and moving to France.

One has to ask, what became of said company?

 

[No Ta Doctor]

I can only think of the boots analogy applying to housing i.e. having enough for a deposit on a house, rather than renting. But if we're talking about deprived areas then lots of places will be social housing, and lots will be cheaper rent due to the area, and those who own outright have presumably got beyond the boots analogy ceiling.

Regarding Drs, that was simply an example. I'm not sure how a teacher getting less, when they have more holiday and are not responsible for whether a person lives or dies, has anything to do with it. My main point was, what's the point in anyone aspiring to a higher paid job if they're then being forced to hand half their wages over to cover underserved areas? I have felt this directly; I had the opportunity of a promotion but I thought what's the point as it would eventually take me into the 40% tax bracket

40%

Lol, I live in Copenhagen

 

[Psamathe]

One has to ask, what became of said company?

About a year after I resigned it was taken over by the company we were previously looking to take-over. The non-exec. sort of departed prior to that.

MD emigrated, I went to live in France then resigned then things sort of went downhill hence them being taken over.

 

[Pblakeney]

About a year after I resigned it was taken over by the company we were previously looking to take-over. The non-exec. sort of departed prior to that.

MD emigrated, I went to live in France then resigned then things sort of went downhill hence them being taken over.

Chapeau.

 

[Milzy]

Are you actually saying you turned down a promotion due to the possibility of paying more tax at some point in the future ? Even though you'd actually have a higher take home pay ?

Put your own arm around your own shoulder , walk to a quiet place and then have a quiet word with yourself.

It’s true, I know loads who won’t earn more money because they’ll pay more for their own kids through CSA. Sorry I can’t do any overtime boss, CSA will get me, haha scum bag morons.

 

[AuroraSaab]

I don't think it's unusual once people have reached a certain level and standard of living to choose not to progress due to increased tax.
https://www.bmj.com/content/366/bmj.l5006

https://medicsmoney.co.uk/how-nhs-doctors-can-avoid-the-60-tax-trap/

 

[UglyWithaSidePart]

Of course @AuroraSaab but we're not talking about wayne from warehousing or trevor from accounts here.
I was lucky enough to be caught by same 'trap' myself, though not a doctor, I was a senior manager in cyber security.
The answer is to simply max out your pension contributions (I could 'only' contribute £40k a year when working, it's £60k now), that effectively brings down your salary to well below the 'trap', and if it doesn't then I have a tiny violin to play.

 

[PurplePenguin]

I don't think it's unusual once people have reached a certain level and standard of living to choose not to progress due to increased tax.
https://www.bmj.com/content/366/bmj.l5006

https://medicsmoney.co.uk/how-nhs-doctors-can-avoid-the-60-tax-trap/

View attachment 16571

The thing is the 60% (62% when including NI) still means more money from being paid more, but that's not the case if you include lost hours of childcare. Moving from £99,999 to £100,000 with two kids who receive 30 hours a week of childcare would be very costly.

 

[briantrumpet]

The thing is the 60% (62% when including NI) still means more money from being paid more, but that's not the case if you include lost hours of childcare. Moving from £99,999 to £100,000 with two kids who receive 30 hours a week of childcare would be very costly.

Dan Neidle (obvs) agrees with you. It's a drum he's been banging for a long time. He does consider childcare too.

https://taxpolicy.org.uk/2024/10/17/reform-income-tax-end-the-scandal-of-high-marginal-rates/

 

[Beebo]

There are people at my work who are desperate not to cross the £100k threshold.
As the child care costs is a massive cliff edge. It’s not that hard if you have a £80k salary and a £20k bonus.

I know that £100k is lots of money, but it really isn’t in London, and the thresholds simply haven’t kept pace with inflation. It should be £160k if it had kept up with inflation.

 

[PurplePenguin]

There are people at my work who are desperate not to cross the £100k threshold.
As the child care costs is a massive cliff edge. It’s not that hard if you have a £80k salary and a £20k bonus.

I know that £100k is lots of money, but it really isn’t in London, and the thresholds simply haven’t kept pace with inflation. It should be £160k if it had kept up with inflation.

They can just make pension contributions to avoid it

 

[Mr Celine]

Meanwhile, at the other end of the income scale, the equivalent marginal rate for UC claimants is 55%.