Let me guess. By ending the tax trap so people don’t feel forced to salary sacrifice.
If you earn 100k and get a 20k bonus you can. Take 6,800 cash or keep it all
limeflavoured on
Given that MP’s salaries will soon be over 100k this will 100% be changed soon.
Harambes_Wrath_ on
This cliff edge caused me to go from PAYE to limited company, outside IR35.
PAYE is a waste of time.
TTNNBB2023 on
The way to get this to happen is to stop talking about the £100k tax trap, because whilst that is the worst example, these sort of traps exist lower down too, only to more people who have fewer options, people who are not ‘forced to put it into their pension’, because they cannot afford to put in anyting beyond the bare minimum, nor can they afford to ‘decide to work less’, no they have to pay the extra tax and accept the loss of benefits because what else can they do.
The answer to all of this is to make the tax and benefits system much more incremental for everybody, I mean I could understand the point of having 20% and 40% bands and cliff edge benifits when we had people filling out physical forms and inputting payments manually, but surely this is the sort number crunching that technology should be helping us with?
user97532567 on
There’s also a tax trap 60-80k for child benefit too. Means testing destroys insentives to work at all levels. The system being fair is ideological bollocks the primary thing it needs to do is work.
5 commenti
Let me guess. By ending the tax trap so people don’t feel forced to salary sacrifice.
If you earn 100k and get a 20k bonus you can. Take 6,800 cash or keep it all
Given that MP’s salaries will soon be over 100k this will 100% be changed soon.
This cliff edge caused me to go from PAYE to limited company, outside IR35.
PAYE is a waste of time.
The way to get this to happen is to stop talking about the £100k tax trap, because whilst that is the worst example, these sort of traps exist lower down too, only to more people who have fewer options, people who are not ‘forced to put it into their pension’, because they cannot afford to put in anyting beyond the bare minimum, nor can they afford to ‘decide to work less’, no they have to pay the extra tax and accept the loss of benefits because what else can they do.
The answer to all of this is to make the tax and benefits system much more incremental for everybody, I mean I could understand the point of having 20% and 40% bands and cliff edge benifits when we had people filling out physical forms and inputting payments manually, but surely this is the sort number crunching that technology should be helping us with?
There’s also a tax trap 60-80k for child benefit too. Means testing destroys insentives to work at all levels. The system being fair is ideological bollocks the primary thing it needs to do is work.