Scottish Politics / Independence - Vol 12
Discussion
Continued from here:
Scottish Politics / Independence - Vol 11
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Scottish Politics / Independence - Vol 11
https://www.pistonheads.com/gassing/topic.asp?h=0&...
biggles330d said:
interesting parallel here and maybe a precursor of a wider reaction when the reality hits in April for a lot of people. The O/H's income level has fallen into the band that will have a 65% marginal tax rate. Yes, it's a decent living and we are certainly comfortable, but not living on champagne and oysters. But having done the calculation last night she's going to see a drop in take home of over £500 a month, simply in additional tax.
I may be misunderstanding the situation, so apologies if that is the case.I cannot see how an increase in salary and moving into a higher tax band will cause a reduction in take home pay. The higher tax rate is only applied to the amount over the threshold.
biggles330d said:
Simply crossing into a new band won't but in very broad terms, the new 45% 'advance' tax rate being introduced in Scotland will apply from April, which is up from the 42% that is currently being paid for a chunk of salary, and above a certain level your tax free person allowance (£12570) starts to get wound back so you start paying tax from a lower start point at the other end. At the sort of level we are talking about, which I accept is a decent living, but not outrageously so and definitely in the range of normal professional people just having worked diligently up the ladder in their normal careers both public and private who aren't really chasing the megabucks, those two changes are about £3k each in increased tax each per year. I.e., c£500 / month hit in take home. Overnight. Thanks SNP.
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