"Andrew" wrote in message
news
On 10/06/2017 11:08, Dave Plowman (News) wrote:
In article ,
Andrew wrote:
The top rate of tax was 60% for some time during Nigel Lawsons spell
in number 11. Cutting it to 40% occurred quite late on and Gordon
Brown kept the 40% almost until the end. The 50% tax rate was
introduced simply to give the Labour party some 'ammunition' to
portray the Conservatives as friends of 'rich' who wanted to
'cut their taxes'. And Brown kept the 40% rate because he was
told by the treasury that increasing it would not result in a
significant increase in tax collected.

Love to know how those on PAYE get out of paying the higher tax rates.
Because you are suggesting this happened. And if they can get out of
paying a higher rate of 50%, why would they not do the same with 40% or
whatever?


EASY. They become self-employed, paying dividends or 'self-employed'
paying 9% NI.

people who pay themselves via dividends have to pay an income surcharge to
take the effective tax rate up to the same as the higher rates

This tabloid idea that paying dividends saves tax is completely false, but
they still persist in touting it however often they ate told it is wrong

Or they sacrifice salary for pension contributions or

The new system of maximum contributions scuppers this except for marginal
amounts

other in-work benefits.

which are usually fully taxable as if they were income

Loads of high-earners in the NHS, BBC and many parts of government are
doing this.

because it does save on NI

It doesn't save a penny on tax

The employer is only too happy to agree because it costs them less too.

Not always

tim