Oooh, I completely misheard that bit of the announcement, thinking it applied only to those aged 65+ with a higher personal allowance, where there's already provision for the extra allowance to be withdrawn when someone's income is above a particular level.
And yeah, your calculations seem right and the whole thing seems illogical - if you want to withdraw someone's personal allowance then that should kick in at a later point that the highest marginal tax rate.
Hmm, on the other hand, what's the effect of the Upper Earnings Limit for NI contributions on your calculations? UEL = £844/week. £844 × 52 = £43 888 - ahh, so not at all relevant when looking at £100k+ salaries as the effect has already happened.
ST (ie. point at which you start to pay NI contributions at 11%) = £110/week £110 × 52 = £5 720
So incorporating NI + assuming under 65 you get:
£0 - £5720 = 0% £5721 - £6475 = 11% NIC £6476 - £41 275 = 11% NIC + 20% income tax £41 273 - £43 888 = 11% NIC + 40% income tax £43 888 - £100 000 = 1% NIC + 40 % income tax £100 001 - £113 000 = 1% NIC + 60% income tax £113 001 - £150 000 = 1% NIC + 40% income tax £150 001 + = 1%NIC + 50% income tax
So, if that's right, there's also a point where salaries between £41 273 and £43 888 are also taxed at a higher marginal rate than those between £43 888 - £100 000.
I wish I could redesign the tax system to be more sensible and logical.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
no subject
And yeah, your calculations seem right and the whole thing seems illogical - if you want to withdraw someone's personal allowance then that should kick in at a later point that the highest marginal tax rate.
Hmm, on the other hand, what's the effect of the Upper Earnings Limit for NI contributions on your calculations? UEL = £844/week. £844 × 52 = £43 888 - ahh, so not at all relevant when looking at £100k+ salaries as the effect has already happened.
ST (ie. point at which you start to pay NI contributions at 11%) = £110/week £110 × 52 = £5 720
So incorporating NI + assuming under 65 you get:
£0 - £5720 = 0%
£5721 - £6475 = 11% NIC
£6476 - £41 275 = 11% NIC + 20% income tax
£41 273 - £43 888 = 11% NIC + 40% income tax
£43 888 - £100 000 = 1% NIC + 40 % income tax
£100 001 - £113 000 = 1% NIC + 60% income tax
£113 001 - £150 000 = 1% NIC + 40% income tax
£150 001 + = 1%NIC + 50% income tax
So, if that's right, there's also a point where salaries between £41 273 and £43 888 are also taxed at a higher marginal rate than those between £43 888 - £100 000.
I wish I could redesign the tax system to be more sensible and logical.