Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
In 2009, Howard, the then government put bonus tax at 50%.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i will take your word on that alex but i thought it was the higher rate of tax that went up to 50% when mr darling was at the exchequer.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
As of April 2013, Howard, the top tax rate, starting on earnings over £150,000 a year, has gone down from 50% to 45%.
Here is a clue as to how the top earners are avoiding paying tax on bonuses.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9864950/Deferring-bonuses-to-avoid-50p-tax-rate-could-incur-punitive-fines.htmlKeith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
anyone crying for help yet lol
ALL POSTS ARE MY OWN PERSONAL VIEWS
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
help.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
sometimes I wonder if we go into another world
ALL POSTS ARE MY OWN PERSONAL VIEWS
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
yes kieth,its called the twilight zone,remember the theme tune.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
Used to watch that
ALL POSTS ARE MY OWN PERSONAL VIEWS
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
There is no such thing as a bonus tax Alexander. This just shows how you get carried away in your imagination and how you misunderstand what you read. That was an article before April 5th when the higher rate of tax was 50p.
Tax on income is as follows:
Up to £9440 - nil income tax
£9441 to £41450 - 20% (plus 12% National Insurance on £7748 to £41444)
£41451 to £100,000 - 40% (plus 2% National Insurance)
£100,001 - £118,880 - 60% effective rate due to withdrawal of personal allowance (plus 2% National insurance)
£118,881 - £150,000 - 40% (plus 2% National Insurance)
£150,000 plus - 45% (plus 2% National Insurance)
Dividends get a 10% tax credit with higher rate of 32.5% (income over £41450) and additional rate at 37.5% (income over £150,000)
There is an additional 'tax spike' for when child benefit gets withdrawn.
Over 65 you get an extra tax allowance and more at 75 - these are frozen and will disappear. These are withdrawn anyway for over 65s who have taxable income of
CGT is 18% - 28% for higher and additional rate taxpayers
Reliefs are available via pensions, EIS schemes, VCTs and SEED EIS schemes. ISA give tax free income while insurance bonds tax deferred income. Trusts can be used to mitigate or eliminate inheritance tax. AIM quoted shaes held two years are free of IHT liabilities. Relief is given on business assets for CGT. There are a whole range of reliefs for IHT, gift, payments from regular income etc etc etc.
It is this complexity and high rates that encourage avoidance. Indeed it is mandatory, a judge ruled that accountants and advisers have a duty to help people use the rules to minimise their tax liabilities.
That is just a flavour of how complex our tax system is. Make no mistake this is just touching the surface, but there is no such thing as a bonus tax.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Following on - the highest rate of tax was 40p right through to 2011 the rate increase having been mooted by Brown as a political trap for the Conservatives. It then went up to 50p and lost the Treasury a lot of revenue. This was predicted and is the reason Brown did not do it during Labour's previous 13 years. The reduction to 45p has increased the tax-take by the Treasury though some of that was because many people sensibly deferred taking some income when it was a 50p. The amount of tax paid by the wealthy would increase a lot more if the top rate was reduced to 40p. The most efficient revenue raising would be from a simple flat tax system.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
so i was right all along - if there was such a thing as a bonus tax someone earning £.12000 would hand over half of a £.200 christmas bonus to the exchequer.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Correct Howard.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barry,re,alex.he lives in the twilight zone,and that's just around the corner from you. cue theme tune.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
With bonus tax I am referring to the bonuses of the company executives on high salaries, as you all full well know!
Any personal income above £150,000 a year is taxed at 45% from April 2013, previously it was 50%.
So wherever a salary plus a bonus go above £150,000 a year, it is taxed at the highest tax rate (currently 45%)..
Hence, a bonus is taxed at 45% together with the basic salary, when these combined are above £150,000.
Barry's and Keith's failed parties are the ones that got Britain's economy into the catastrophic mess it is in, so it should not be surprising they are both singing from the same hymn sheet in trying to ridicule what I am writing here.
Spin doctor posts!
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
Alexander
im not in any party
that said im still in the real world
ALL POSTS ARE MY OWN PERSONAL VIEWS
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
Fact is, chief executive bonuses are taxed at 45%, previously 50%, no matter how Barry and Keith try to spin it around.
How can you ridicule common fact knowledge?
The banker's bonuses and those of other high-earning executives in share companies go 45% into the Treasury. Full Stop!
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
Oh dear
please beam me up scottie lol
ALL POSTS ARE MY OWN PERSONAL VIEWS
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
the penny doesn't seem to drop alex, it is all about the top rate of taxation.
for example:-
if someone earns £.200,000 p.a. and gets a £.100,000 bonus, he/she would pay exactly the same amount of tax as someone earning £.300,000 with no bonus.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Correct Howard.
Alexander, as I have said before, would try to tell a brain surgeon how to do his job...
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
funnily enough barry when i first started work i thought overtime got taxed at a higher rate.
the reason being that when i just had a basic 40 hour wage slip the proportion of of tax was lower, took me 3 years to work out that the tax code allowance made it look that way.