UK tax system Watch

gamey21
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How is it fair that my friend on a 14.4k salary hardly gets taxed. Im on a 21k salary and i get taxed much more.

He earns 14.4k before tax, after tax goes home annually with 13.3k. Work hours 35 per week. Mon-Fri 8.30am-3.30pm

I earn 21k before tax, after tax I get 17.5k per year. Work hours 40 per week.
9.30am-5.30pm. Mon- Fri

I put in more hours, earn more but i’d rather have less hours earn less due to this tax system. In hindsight this 3-4k extra doesn’t seem like much at all. He gets to save more because he lives with his family. Most my money goes towards rent, bill, food expenses, helping my family out. All of which are not his circumstances. Last year he managed to save 9k from his salary, I could just about save 6.5k I know i’m complaining but It’s unfair, the tax system needs to be re-evaluated and people should be taxed due to their circumstance not their salary.
Last edited by gamey21; 1 week ago
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Admit-One
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It’s 2019, he’s on 14k a year and lives at home. Very few people would be envious of his position.

Meanwhile you’re taking home 83% of your salary after tax and NI. That’s pretty much just the real world I’m afraid.

It’d be impossible to take into account individual circumstances when calculating tax, because people would just flat out lie. At least your salary is factual.
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Burton Bridge
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The tax system is not unfair, it's actually very fair. However the 10p band was abolished which it shouldn't have been which benefits you and he equally, but punishes people who are struggling also.

I would agree the tax system needs to be changed, back to how it used to be when it was more progressive however it appears you have alot of head room saving £6500 in a year and are in a much better position than your friend, so I don't see why you are complaining
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Xarao
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So you're earning 4.2k more after tax in comparison to your friend for just working ONE extra hour each day.

What are you even complaining about?
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Salostar
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You're complaining about the tax system because your friend lives at home while on a lower salary while you have a higher salary and live in rented accommodation? That's not how the tax system works at all...
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ThomH97
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He's taking home about 87% of what you do per hour. Having parents willing to put him up has nothing to do with the tax system. Unless you want to incentivise people against helping others (including their kids), but I don't see how that policy gets support.
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Bang Outta Order
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(Original post by gamey21)
How is it fair that my friend on a 14.4k salary hardly gets taxed. Im on a 21k salary and i get taxed much more.

He earns 14.4k before tax, after tax goes home annually with 13.3k. Work hours 35 per week. Mon-Fri 8.30am-3.30pm

I earn 21k before tax, after tax I get 17.5k per year. Work hours 40 per week.
9.30am-5.30pm. Mon- Fri

I put in more hours, earn more but i’d rather have less hours earn less due to this tax system. In hindsight this 3-4k extra doesn’t seem like much at all. He gets to save more because he lives with his family. Most my money goes towards rent, bill, food expenses, helping my family out. All of which are not his circumstances. Last year he managed to save 9k from his salary, I could just about save 6.5k I know i’m complaining but It’s unfair, the tax system needs to be re-evaluated and people should be taxed due to their circumstance not their salary.
Dude. Even after tax..you still make more than your friend. Hush yourself.
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nutz99
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Ask your parents or grandparents what they they think of current tax rates compared to the rates they had to pay. The basic rate of tax was 35% at one time during the 1970s. You have it easy compared to them!
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RogerOxon
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(Original post by gamey21)
the tax system needs to be re-evaluated and people should be taxed due to their circumstance not their salary.
This seems to be your only point. The fact that they live at home, i.e. have lower living expenses, isn't something that the tax system takes into account. I understand that you think this unfair, but I would caution that making it more complicated would just create more issues / abuse.

Once your career progresses, you'll laugh at how little tax you used to pay.
Last edited by RogerOxon; 6 days ago
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Mike172
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I really wouldn’t be envious of someone on essentially minimum wage.

I do agree with you, though. I’d prefer to see a flat rate tax system. I pay 40% tax on a chunk of my earnings, that doesn’t seem fair to me. If you taxed everyone a flat rate of say 20% then the higher earners would still pay more tax just the same proportion as those on lower incomes.
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Salostar
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(Original post by Mike172)
I really wouldn’t be envious of someone on essentially minimum wage.

I do agree with you, though. I’d prefer to see a flat rate tax system. I pay 40% tax on a chunk of my earnings, that doesn’t seem fair to me. If you taxed everyone a flat rate of say 20% then the higher earners would still pay more tax just the same proportion as those on lower incomes.
Those on low incomes pay a higher proportion in in tax already - council tax, VAT, etc. These are generally unseen taxes and not often identified when it comes to discussions on taxation...
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Burton Bridge
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(Original post by Mike172)
I really wouldn’t be envious of someone on essentially minimum wage.

I do agree with you, though. I’d prefer to see a flat rate tax system. I pay 40% tax on a chunk of my earnings, that doesn’t seem fair to me. If you taxed everyone a flat rate of say 20% then the higher earners would still pay more tax just the same proportion as those on lower incomes.
No the whole idea is to collect tax from those who can afford it! Ironically that's the OP and his friend!

The abolishment of the 10p tax band and the 50p tax band as well as raising the personal allowance is what is causing the injustices. You simply have to get the tax from people who have it, and then hope that it's used properly and if it isn't hold those responsible to account at the ballot box!
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Mike172
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(Original post by Burton Bridge)
No the whole idea is to collect tax from those who can afford it! Ironically that's the OP and his friend!

The abolishment of the 10p tax band and the 50p tax band as well as raising the personal allowance is what is causing the injustices. You simply have to get the tax from people who have it, and then hope that it's used properly and if it isn't hold those responsible to account at the ballot box!
Why?

Why should higher earners pay a greater proportion of their income in taxes?
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Tawny007
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(Original post by gamey21)
How is it fair that my friend on a 14.4k salary hardly gets taxed. Im on a 21k salary and i get taxed much more.

He earns 14.4k before tax, after tax goes home annually with 13.3k. Work hours 35 per week. Mon-Fri 8.30am-3.30pm

I earn 21k before tax, after tax I get 17.5k per year. Work hours 40 per week.
9.30am-5.30pm. Mon- Fri

I put in more hours, earn more but i’d rather have less hours earn less due to this tax system. In hindsight this 3-4k extra doesn’t seem like much at all. He gets to save more because he lives with his family. Most my money goes towards rent, bill, food expenses, helping my family out. All of which are not his circumstances. Last year he managed to save 9k from his salary, I could just about save 6.5k I know i’m complaining but It’s unfair, the tax system needs to be re-evaluated and people should be taxed due to their circumstance not their salary.
People get taxed on anything over an above £12,500... that's why you pay more tax. If the system took into account everyone's personal circumstances there would be a lot more fraud than there already is. It's expected that people who earn more pay more tax. You earn £21k but you wouldn't expect someone who earns £100k to be paying the same amount of tax as you, you'd expect them to pay more.
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Burton Bridge
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(Original post by Mike172)
Why?

Why should higher earners pay a greater proportion of their income in taxes?
Because they can afford it, higher earners are not condisive to education or inportantce if roles, the tax system is a safety net to make insure the ability of all in society can live a reasonable life.

That's people like security guards, care assistants, child care nurses, bakers, etc. In places that doesn't have progressive taxes these people live in poverty - why should they be left in poverty just to give those with spare money in abundance anyway more spare money?
Last edited by Burton Bridge; 6 days ago
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Burton Bridge
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(Original post by Tawny007)
People get taxed on anything over an above £12,500... that's why you pay more tax. If the system took into account everyone's personal circumstances there would be a lot more fraud than there already is. It's expected that people who earn more pay more tax. You earn £21k but you wouldn't expect someone who earns £100k to be paying the same amount of tax as you, you'd expect them to pay more.
Personal circumstances are taken into account, in the welfare system most benefit claimants are working.

That's why the personal allowance need taking back down.
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Mike172
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(Original post by Burton Bridge)
Because they can afford it, higher earners are not condisive to education or inportantce if roles, the tax system is a safety net to make insure the ability of all in society can live a reasonable life.

That's people like security guards, care assistants, child care nurses, bakers, etc. In places that doesn't have progressive taxes these people live in poverty - why should they be left in poverty just to give those with spare money in abundance anyway more spare money?
Because they can afford it isn’t an argument. Where do you draw the line? Should all disposable income be forfeited to the state to help those lower down the ladder?

What gives lower earners the right to take my hard earned money? Why is that not selfish but me wanting to keep what I earn is?

Those on lower wages can get a better paying career if they like.
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Salostar
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(Original post by Mike172)
Because they can afford it isn’t an argument. Where do you draw the line? Should all disposable income be forfeited to the state to help those lower down the ladder?

What gives lower earners the right to take my hard earned money? Why is that not selfish but me wanting to keep what I earn is?

Those on lower wages can get a better paying career if they like.
Because there is such as thing as a society.

Just because you may be earning a lot now doesn't mean that you will always in the future. You should also look beyond income tax alone, there are many taxes which we all pay which aren't based on income and which affect those on low incomes proportionally more than those on a high income.
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RogerOxon
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(Original post by Mike172)
Where do you draw the line?
Obviously, anyone earning more than me should pay a lot more tax

(Original post by Mike172)
What gives lower earners the right to take my hard earned money? Why is that not selfish but me wanting to keep what I earn is?
I'd be for a flat tax percentage, but I'd pay a lot less. I don't mind paying for a safety net for those genuinely in need, but I do for people that won't get off their backsides and put some effort into work, or have children that they can't afford.

I do find it nasty that so many think that "the rich" should pay for everyone else - moving to US avoids some, but I hate not having basic healthcare for all.

(Original post by Mike172)
Those on lower wages can get a better paying career if they like.
Many cannot. They often don't have one of the education, ability or desire. In the US, I see a lot of people that work incredibly hard to make a life for themselves (the US certainly has its issues though). It's a shame that many in the UK don't.
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Admit-One
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(Original post by Mike172)
Where do you draw the line? Should all disposable income be forfeited to the state to help those lower down the ladder?
This is a straw man. No one is arguing this point.
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