2017 vs 2003 PAYE TAX

[WEHGuy]

Hi Folks,

These numbers are frankly scary.

Gross Pay 2003 £1,658,538.00 2017 £1,866,856.00 Difference £208,318.00 % 12.56%
Employers NI 2003 £0.00 2017 £256,506.67 Difference £256,506.67 %
Total Cost To Employer 2003 £1,658,538.00 2017 £2,123,362.67 Difference £464,824.67 % 28.03%

10% rate 2003 £192.00 2017 £0.00 Difference -£192.00 %
20% rate 2003 £0.00 2017 £6,400.00 Difference £6,400.00 %
22% rate 2003 £6,155.60 2017 £0.00 Difference -£6,155.60 %
40% rate 2003 £649,611.20 2017 £47,200.00 Difference -£602,411.20 %
45% rate 2003 £0.00 2017 £772,585.20 Difference £772,585.20 %
National Insurance 2003 £2,579.20 2017 £40,670.32 Difference £38,091.12 % 1476.86%
Total Tax 2003 £658,538.00 2017 £866,855.52 Difference £208,317.52 % 31.63%

All Taxes 2003 £658,538.00 2017 £1,123,362.19 Difference £464,824.19 % 70.58%

Net Wage 2003 £1,000,000.00 2017 £1,000,000.48

Sorry for the crap formatting but, that is how it comes up when I paste from Excel. How can the government get away with charging a staggering 70%+ more on the same net pay?

[rossub]

More tax on a Salary of £1.86m?

You'll have a tough time finding anyone who gives a fk

[castroses]

If you've come on here to complain to us about how much tax you're paying on 1.86 million then you frankly are a whiny little ****.

[WEHGuy]

Even somebody taking home £30k net is paying 16%+ more

[MagicalTrevor]

[MitchT]

First world problems.

[tight fart]

I'm sorry but you're wrong, I've listened to every chancellor do the budget speech and we are better off now.

[HarryW]

WEHGuy said:

Hi Folks,

These numbers are frankly scary.

Gross Pay 2003 £1,658,538.00 2017 £1,866,856.00 Difference £208,318.00 % 12.56%
Employers NI 2003 £0.00 2017 £256,506.67 Difference £256,506.67 %
Total Cost To Employer 2003 £1,658,538.00 2017 £2,123,362.67 Difference £464,824.67 % 28.03%

10% rate 2003 £192.00 2017 £0.00 Difference -£192.00 %
20% rate 2003 £0.00 2017 £6,400.00 Difference £6,400.00 %
22% rate 2003 £6,155.60 2017 £0.00 Difference -£6,155.60 %
40% rate 2003 £649,611.20 2017 £47,200.00 Difference -£602,411.20 %
45% rate 2003 £0.00 2017 £772,585.20 Difference £772,585.20 %
National Insurance 2003 £2,579.20 2017 £40,670.32 Difference £38,091.12 % 1476.86%
Total Tax 2003 £658,538.00 2017 £866,855.52 Difference £208,317.52 % 31.63%

All Taxes 2003 £658,538.00 2017 £1,123,362.19 Difference £464,824.19 % 70.58%

Net Wage 2003 £1,000,000.00 2017 £1,000,000.48

Sorry for the crap formatting but, that is how it comes up when I paste from Excel. How can the government get away with charging a staggering 70%+ more on the same net pay?

Id like to think if I netted £1M a year for the last 14 years I'd be retired.....

However agree the Tax burden on those working on anything above minimum wage has increased completely out of kilter, criminally so.

Years ago I used to get wound up by Winky Mac Winky the prudent one apparently, year on year removing local council funds and letting them fill their shortfall by just putting it straight onto the council tax. This along with the Police percept increases for the same reason, both of which regularly went up by 20% a time. I then realised that only stress came from it, so now I just ignore it, pay my bills and live my life. I still think all politicians are wasters and born s, but I don't sweat it anymore.....

[audi321]

WEHGuy said:

Even somebody taking home £30k net is paying 16%+ more

Where do you get your figures from?

For example in 2003/4 someone grossing £40k takes home £28,584


And the same calculation today shows them taking home £30,367



How is this 16% more tax? It's actually over 5% less!

[WEHGuy]

audi321 said:

WEHGuy said:

Even somebody taking home £30k net is paying 16%+ more

Where do you get your figures from?

For example in 2003/4 someone grossing £40k takes home £28,584


And the same calculation today shows them taking home £30,367



How is this 16% more tax? It's actually over 5% less!

Do you think the company actually pays the employer NI, or do you think they set a pay rate and then deduct that cost before they set the gross pay? It was 2002/2003

Employers NI 2003 £0.00 2017 £4,326.02 Difference £4,326.02

[WEHGuy]

Tax Types 2003 2017 Difference %
Gross Pay 2003 £41,872.00 2017 £39,460.00 Difference -£2,412.00 % -5.76%
Employers NI 2003 £0.00 2017 £4,326.02 Difference £4,326.02
Total Cost To Employer 2003 £41,872.00 2017 £43,786.02 Difference £1,914.02 % 4.57%

10% rate 2003 £192.00 2017 £0.00 Difference -£192.00
20% rate 2003 £0.00 2017 £5,692.00 Difference £5,692.00
22% rate 2003 £6,155.60 2017 £0.00 Difference -£6,155.60
40% rate 2003 £2,944.80 2017 £0.00 Difference -£2,944.80
45% rate 2003 £0.00 2017 £0.00 Difference £0.00
National Insurance 2003 £2,579.20 2017 £3,768.00 Difference £1,188.80 % 46.09%
Total Tax 2003 £11,871.60 2017 £9,460.00 Difference -£2,411.60 % -20.31%

All Taxes 2003 £11,871.60 2017 £13,786.02 Difference £1,914.42 % 16.13%

Net Wage 2003 £30,000.40 2017 £30,000.00

[audi321]

Ok if you're going to work it out properly, you need to take into account inflation.

So, £40,000 today would have been the equivalent of £26,845 in 2002.

The take home pay in 2002/3 for someone earning £26,845 would have been £19,962 (74%)

Someone earning £40,000 today would take home £25,967 (65%) if you take into account the ER NI which is debatable as to whether it should be taken into account or not.

So yes, there's a big difference in take home pay if you take into account ER NI.......however this is tax deductible so doesn't actually cost the full amount, also, I'm not totally sure I agree with you that employers take ER NI when calculating salary. The ER NI kicked in during the 2007/8 tax year and nothing really happened to average earnings during this time, so I don't really agree that the ER NI should be taken into account when doing this exercise.

Strip this out and the employee is actually better off at £30,367 (76%) in 2016/17 tax year.

Plus many small employers do not even pay ER NI due to the Employment Allowance grant of £3,000/year.

[HarryW]

As I alluded to earlier you are missing important changes to the levels of indirect Taxation, started first by the one eye . There has been approximately a doubling of indirect taxation income to the exchequer over the period. The average person now pays around £11k in tax, £5k of which is indirect... Politicians second only to the grim reaper in my estimation.

[DanX5]

WEHGuy said:

Do you think the company actually pays the employer NI, or do you think they set a pay rate and then deduct that cost before they set the gross pay? It was 2002/2003

Employers NI 2003 £0.00 2017 £4,326.02 Difference £4,326.02

Was the Employers NIC rate in 2002/2003 not 11.8% for earnings over £89 per week? The rate has since increased to 13.8% as well as increases to the starting threshold.

I make it £4,173.90 for 2002/2003, or am I missing something?

In your first example to get to the £1m 'net' I make it £195,157.84 of employers NIC.

[Welshbeef]

Do the same calcs

2003 v 2009
2009 v 2017

So that we can determine if a labour govt OR a Tory govt. penalise the very high earners more or less.

You also have utterly unfair and unjust taxes/removal of benefit ie child benefit.
2x earners pulling £50k each £100k combined with 2kids get to keep the full child benefit c£4K a year net salary upside.
Yet a family with one earner pulling in £60,000 and a stay at home mum instead gets £0 child benefit... that is unjust