Ok, I heard the budget news briefly regarding the budget this week but I've now had a few minutes to do some further digging, reading around I am starting to get a very ugly picture of this government:-
Basically from what I gather the UK basic tax allowance is around £6K (that's the amount of money you are allowed to initially earn which you will not be taxed on). BUT according to the budget 2009, new tax laws will mean that for any gross earnings above £100K, every two pounds that you earn will eliminate £1 of your initial £6K personal tax allowance (tax free) meaning that if you earn £112K you don't get that initial £6K tax allowance any more. This means that the effective tax rate from £100K to £112K is around 60% !!!! (drop my Bacon sandwich !)
Is this true or have I misread this ? is this tax law in effect right now for tax year 2009-2010 ? or does it only START being law April 2010 ?
Is there any end to this UK government taking the incentive out of the private sector, the only one's who can start pulling us out of this mess ?
here is one of the links that states this in the main points:
http://www.shoosmiths.co.uk/news/2209.asp
Basically from what I gather the UK basic tax allowance is around £6K (that's the amount of money you are allowed to initially earn which you will not be taxed on). BUT according to the budget 2009, new tax laws will mean that for any gross earnings above £100K, every two pounds that you earn will eliminate £1 of your initial £6K personal tax allowance (tax free) meaning that if you earn £112K you don't get that initial £6K tax allowance any more. This means that the effective tax rate from £100K to £112K is around 60% !!!! (drop my Bacon sandwich !)
Is this true or have I misread this ? is this tax law in effect right now for tax year 2009-2010 ? or does it only START being law April 2010 ?
Is there any end to this UK government taking the incentive out of the private sector, the only one's who can start pulling us out of this mess ?
here is one of the links that states this in the main points:
http://www.shoosmiths.co.uk/news/2209.asp
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