Page 2 of How much tax would you pay if you earned £100k?

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The answer (correctly stated by SJ) is nicely explained here:
https://twitter.com/DavidGWrigley/status/1198855727625969664

I would just point out that the above is a chart made by @MonaChalabi (people keep using her work without crediting her) well known for her infographics.

This item was edited on Tuesday, 26th November 2019, 20:31

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Si Wooldridge says...
"On pure income tax, aye, but not if you include NI - and why wouldn't you?"Because the question said tax.  Literally every single system I know where you're asked about tax, taxable pay/income etc. it always means income tax.  Ask anyone how much 'tax' they pay it will be their income tax.

Also because the correct answer was one of the options.

For info, the answer is:
Most people have a tax free allowance of £12,500.
That leaves £87,500.
The first £37,500 of that is taxed at 20 % = £7,500.
The remaining £50,000 is taxed at 40% = £20,000.
Total of £27,500.

EDIT:  Oops, hadn't seen the other replies or the explanation.

Ste

This item was edited on Tuesday, 26th November 2019, 21:04

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sj says...
"Ask anyone how much 'tax' they pay it will be their income tax."
And that's why Gordon Brown was able to say that he categorically wouldn't raise income tax rates and then just raised NI contributions instead.

I agree that if you purely use income tax that the answer is £27.5k and I knew that at the time I posted my answer, I just no longer accept the premise that the only form of taxation on your pay packet is income tax alone.

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Si Wooldridge
Reviewer

http://synth.myreviewer.com

Quote:
Si Wooldridge says...
"
And that's why Gordon Brown was able to say that he categorically wouldn't raise income tax rates and then just raised NI contributions instead."After almost 10 years of the Tories seeming to do their best to completely destroy the NHS (or have they pretty much succeeded?), you seemed to say that like raising NI was a bad thing.
Personally, I find the level of both party's commitment to borrow obscene amounts of money awful.
I'm sure you did know the answer but chose to ignore the real question to try to make a political point.
You could easily say 'It doesn't matter how much you earn, did you buy any cars with VAT?' for example.
However, the point of multiple choice questions is that the answer is there and you try to choose it.

Ste

You forgot to add the TV Licence, VAT on purchases, Inheritance Tax, NHS charges for dentists, opticians, prescription charges, Council Tax, MOT, Royal Mail handling fees etc...

They’re all taxes, right?

===========================
Jitendar Canth

Quote:
"I thought what I`d do was, I`d pretend I was one of those deaf-mutes."

Site Reviewer at DVD Reviewer & MyReviewer

Carving out a niche with a pneumatic drill at Anime @ MyReviewer.com

Quote:
sj says...
"I'm sure you did know the answer but chose to ignore the real question to try to make a political point."
This thread was a political point, so I've just added to it.  Any raising of NI to disguise the fact that you're increasing the tax burden to pay for public spending is not on in my book, and I'm pretty sure Osborne did it as well.

Quote:
Jitendar Canth says...
"You forgot to add the TV Licence, VAT on purchases, Inheritance Tax, NHS charges for dentists, opticians, prescription charges, Council Tax, MOT, Royal Mail handling fees etc...

They’re all taxes, right?"
Yes they are, at least some of them...

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Si Wooldridge
Reviewer

http://synth.myreviewer.com

And fuel duty, duty on tobacco and alchohol, insurance premium tax, corporation tax, tax on income from savings and all those other stealthy little ways that governments have been sneaking a little extra out of the public and businesses to buy us all the stuff we need to continue to exist as a country.

Why single out NI? Of all the burdens we have to bear, it is easier than with most taxes to see that the money is spent on everyone, on the health service and on pensions. Would it help to just rename it, stick the word tax in there somewhere?

===========================
Jitendar Canth

Quote:
"I thought what I`d do was, I`d pretend I was one of those deaf-mutes."

Site Reviewer at DVD Reviewer & MyReviewer

Carving out a niche with a pneumatic drill at Anime @ MyReviewer.com

Quote:
Jitendar Canth says...
"Why single out NI?"
Because it's a fundamental part of PAYE.

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Si Wooldridge
Reviewer

http://synth.myreviewer.com

.... that wasn't part of the question.

Rob, I didn't take it that way but was this thread making a political point? If so, what? I just saw it as educational and correcting maybe a misconception.

Ste

This item was edited on Wednesday, 27th November 2019, 16:33

I'm guessing it was inspired by this:

https://www.bbc.co.uk/news/50517136

And yes, I realise this chap was talking about a salary of £80k...

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Si Wooldridge
Reviewer

http://synth.myreviewer.com