
Is it fair that a full-time worker on less than double the minimum wage can pay 40% income tax?
In England, Wales and Northern Ireland the 40% rate applies to income above £50,270 (the £12,570 personal allowance plus the £37,700 basic-rate band), and only the slice above that is taxed at 40%. The National Living Wage is £12.71 an hour and rises to £13.21 from April 2027, as confirmed in the 28 October Budget. At £13.21, a 40-hour week comes to about £27,500 a year, so the 40% threshold is reached on roughly 1.8 times a full-time minimum wage salary, or about £24 an hour. Thresholds have been frozen since 2022 and the Budget kept the freeze until April 2031. The OBR says this will lift the share of taxpayers paying higher or additional rates from 15% in 2021-22 to 24% by 2030-31. Scotland sets its own income tax bands.
66 Opinions
Freezing the tax bands has got middle income households very hard. Disproportionately so in my opinion. It’s a stealth tax rise, and a very significant one.
All tax allowances need to rise with inflation each year. Freezing them discourages workers to do overtime or apply for promotion knowing that doing so will incur extra tax.
A person earning c.£45K in 80s would have to earn £175K today to enjoy same standard of living. Our Policians are systematically raping & gaslighting us. They trash the economy creat inflation pointless rules & regulations, look after themselves & shockingly then try and argue that somebody on c. £50K is wealthy and they should pay their ‘fair’ share. We are poor & getting poorer but relentless MSM messaging & incessant hectoring from the feral Left says otherwise. We know.
The minimum wage has been pushed up far too high. I own and manage a manufacturing SME so I know from everyday experience how it works. You don't make people richer in the end by forcing the minimum wage up. All you do is force wages up across the board, which forces people like me to increase our prices, which generates inflation, which makes everyone poorer again
It won't be long before most of us are paying 40% tax. All part of the plan to make citizens reliant on The State, other than our over paid legislature, judiciary and politicians (local AND national).
I voted Yes, but only because I think the 40% rate is set at the right threshold. However, tax thresholds should not be frozen; they should rise with inflation every year. The minimum wage should also rise with inflation….NOT above it.
Question is wrong and badly worded. People's understanding of the tax system is bad. But also out tax loopholes for the elite is abhorrent and should be closed first.
Because you are successful and earn more doesn't mean you should pay more. Unless you earn more than say £200 grand a year should pay same tax up to that
No, but the whole tax system is a major mess & the tax bands & thresholds need a total overhaul! The threshold to start paying tax needs unfreezing and raising, allowing low earners to benefit from the extra income (as would we all) & the level at which 40% tax applies needs raising! £50k today isn't a huge income! The loss in revenue could be offset by raising the rate for unearned income (except pensions!)
The tax system needs a fundamental overhaul as it’s currently overly complicated and unfair at all levels