Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    For example, a banker (Director) earning £250k in compensation would have to pay £98,600 in income tax and £8,333 in national insurance. So they only have £143k left over. Do most of them actually pay all of this tax or do they avoid it somehow?
    Offline

    21
    ReputationRep:
    Yeah they do. Since they aren't self employed, there aren't really any ways for them to avoid it.
    To be honest, £143k after tax is a lot of money
    Offline

    20
    ReputationRep:
    (Original post by Trapz99)
    Yeah they do. Since they aren't self employed, there aren't really any ways for them to avoid it.
    To be honest, £143k after tax is a lot of money
    How people like that can complain about tax is beyond me. "Oh I only made £143,000 not including bonuses last year, poor me" Love to see them live like the rest of us...
    Offline

    12
    ReputationRep:
    (Original post by cbreef)
    How people like that can complain about tax is beyond me. "Oh I only made £143,000 not including bonuses last year, poor me" Love to see them live like the rest of us...
    Also the £98,600 they had to give up is a ton of money.
    Offline

    20
    ReputationRep:
    (Original post by biglad2k16)
    For example, a banker (Director) earning £250k in compensation would have to pay £98,600 in income tax and £8,333 in national insurance. So they only have £143k left over. Do most of them actually pay all of this tax or do they avoid it somehow?
    Please don't say 'compensation'. It's vile. You're compensated for an accident, or a injustice. Not for making money come out of computers.

    Yes, they do pay that much tax. If you think £143,000 p.a. is 'only' then you need to come into the real world.
    Offline

    21
    ReputationRep:
    (Original post by cbreef)
    How people like that can complain about tax is beyond me. "Oh I only made £143,000 not including bonuses last year, poor me" Love to see them live like the rest of us...
    I can understand why they might be annoyed. I mean, they do have to pay £98,600 in taxes. Since they earn a large proportion of their money as a bonus, they have kind of made that money themselves so I guess they would feel that they deserve to keep it. I think the £143k was with bonuses after tax.
    Offline

    20
    ReputationRep:
    (Original post by Ahad27)
    Also the £98,600 they had to give up is a ton of money.
    Just pure greed though.
    Offline

    2
    ReputationRep:
    It's preposterous that those on large salaries have to pay so much tax, it should be a flat rate for everyone, regardless of what you earn.
    Offline

    13
    ReputationRep:
    (Original post by #ChaosKass)
    It's preposterous that those on large salaries have to pay so much tax, it should be a flat rate for everyone, regardless of what you earn.
    But then what about the people earning very little, should the same amount of money be asked of them even if they can't afford it?

    Posted from TSR Mobile
    Offline

    21
    ReputationRep:
    (Original post by #ChaosKass)
    It's preposterous that those on large salaries have to pay so much tax, it should be a flat rate for everyone, regardless of what you earn.
    Aye.

    Tax-free allowance to £15,000 (and increases with inflation) and then a flat rate of x amount for the rest.
    Offline

    15
    ReputationRep:
    (Original post by jamestg)
    Aye.

    Tax-free allowance to £15,000 (and increases with inflation) and then a flat rate of x amount for the rest.
    Are you cutting services alongside that as well? Because that's a deficit if I ever saw one.
    Offline

    17
    ReputationRep:
    (Original post by cbreef)
    Just pure greed though.
    Isn't everything after a certain point though?
    Offline

    21
    ReputationRep:
    (Original post by #ChaosKass)
    It's preposterous that those on large salaries have to pay so much tax, it should be a flat rate for everyone, regardless of what you earn.
    (Original post by jamestg)
    Aye.

    Tax-free allowance to £15,000 (and increases with inflation) and then a flat rate of x amount for the rest.
    The problem with a flat tax is that it would significantly reduce tax revenue. The richest 10% contribute around 59% of the total tax collected and a flat tax will give them a huge tax cut, which will reduce tax revenue by a lot. With such a bug loss in revenue, there won't be any money to pay for education, infrastructure and other things which boost the economy.

    Reducing the second highest income tax rate from 40% to 35% would be a good idea since many middle class families are in that bracket but those earning over £150,000 (and are therefore in the highest income tax bracket of 45%) are usually rich enough to afford to pay more in tax without it affecting them too much. We kinda need their money.
    Offline

    19
    ReputationRep:
    (Original post by Trapz99)
    The problem with a flat tax is that it would significantly reduce tax revenue. The richest 10% contribute around 59% of the total tax collected and a flat tax will give them a huge tax cut, which will reduce tax revenue by a lot. With such a bug loss in revenue, there won't be any money to pay for education, infrastructure and other things which boost the economy.

    Reducing the second highest income tax rate from 40% to 35% would be a good idea since many middle class families are in that bracket but those earning over £150,000 (and are therefore in the highest income tax bracket of 45%) are usually rich enough to afford to pay more in tax without it affecting them too much. We kinda need their money.
    Flat tax is not ideal, it would only make income inequality worse by making people on low incomes most likely earn less and could easily have unintended consequences, and it would also mean the highest earners pay considerably less than what they pay now (even with the evasion/avoidance that goes on). Also, it's like price discrimination in a way, tax discrimination allows the government to attempt to maximize tax revenues from different groups of people, each of whom will have a varied ability to pay the tax.
    Offline

    17
    ReputationRep:
    (Original post by azizadil1998)
    Flat tax is not ideal, it would only make income inequality worse by making people on low incomes most likely earn less and could easily have unintended consequences, and it would also mean the highest earners pay considerably less than what they pay now (even with the evasion/avoidance that goes on). Also, it's like price discrimination in a way, tax discrimination allows the government to attempt to maximize tax revenues from different groups of people, each of whom will have a varied ability to pay the tax.
    Why is income inequality an issue?

    if people have enough to 'live on' so to speak.
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by biglad2k16)
    For example, a banker (Director) earning £250k in compensation would have to pay £98,600 in income tax and £8,333 in national insurance. So they only have £143k left over. Do most of them actually pay all of this tax or do they avoid it somehow?
    You can't avoid it as a PAYE registered employee - that's just how it goes.


    Posted from TSR Mobile
    • TSR Support Team
    Offline

    21
    ReputationRep:
    TSR Support Team
    (Original post by cbreef)
    Just pure greed though.
    Oh aye, if you lost almost £100k in tax you would say to yourself 'ach, it's just pure greed they may as well take my intestines too'.

    Posted from TSR Mobile
    Offline

    15
    ReputationRep:
    (Original post by Yaboi)
    Why is income inequality an issue?

    if people have enough to 'live on' so to speak.
    How would you feel if you were earning just enough so that you could pay your bills but not have any disposable income whilst others had more wealth than they know what to do with?
    Offline

    15
    ReputationRep:
    (Original post by Yaboi)
    Why is income inequality an issue?

    if people have enough to 'live on' so to speak.
    Why is Racism an issue?
    Why is Sexism an issue?
    Why is homophobia an issue?

    Shut the **** up, it’s obvious that it’s a way of oppressing the masses and not allowing them to do well in life.
    Offline

    3
    ReputationRep:
    (Original post by cbreef)
    How people like that can complain about tax is beyond me. "Oh I only made £143,000 not including bonuses last year, poor me" Love to see them live like the rest of us...
    Well the "rest of us" aren't good enough to get a banking job and earn that much, anyone can be a banker but do you have the knowledge to be one

    (Original post by Trapz99)
    I can understand why they might be annoyed. I mean, they do have to pay £98,600 in taxes. Since they earn a large proportion of their money as a bonus, they have kind of made that money themselves so I guess they would feel that they deserve to keep it. I think the £143k was with bonuses after tax.
    Exactly
 
 
 
The home of Results and Clearing

1,256

people online now

1,567,000

students helped last year
Poll
A-level students - how do you feel about your results?
Useful resources

Articles:

Guide to investment bankingGuide to consultancy

Featured recruiter profiles:

Deutsche Bank logo

Deutsche Bank is recruiting

"Thrive in an international banking environment"

Quick link:

Unanswered investment banking and consultancy threads

Groups associated with this forum:

View associated groups

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.