Originally Posted by
hargreaves99
https://www.theguardian.com/business...ays-uk-economy
interesting.
EasyJet pilot McKenzie, a father of three, has similar plans: he will soon trade his full-time contract for a part-time one and flip properties on the side.
“I’m a captain, and the only reason I’m still working full-time is because my pension pot is small, due to time abroad. I currently contribute the maximum £40,000 to my pension, but in a few years I’ll absolutely go part-time, like a significant number of my colleagues already have, to avoid paying an effective tax rate of 62% [including 2% national insurance, on income between £100,000 and £125,140 due to the loss of the personal tax-free allowance].
“It’s just not worth it to wake up every day at 3am to work in the job I trained for: I’ll have the same take-home pay as I do now – £5,000 a month – by going part-time and reducing my pension contributions.
The way it sounds to me is that you lose your personal allowance at a rate of £1 for every extra £2 over £100.000. If you make £110.000 you you PA goes down to £7.570, and you pay 20% over (£50.270 - £7.570) + 40% over (£110.000 - 50.270). I don't think the other income tax bands change, just the PA becomes smaller, so the amount taxed at 20% becomes larger by £1 for every £2 raise, and the amount taxed at 40% becomes larger by £1 for every £1 raise, above £100.000. That would make it a 50%
marginal (not effective, because it is only for the increase in pay...) tax rate. The effective rate for £110.000 would be around 30%.