British Workers Wanted - Channel 4
 

On 24/11/2017 12:38, Huge wrote:
On 2017-11-24, JNugent wrote:
On 24/11/2017 09:47, Huge wrote:

On 2017-11-24, JNugent wrote:
On 24/11/2017 02:46, Fredxxx wrote:

[40 lines snipped]


So yes, when NI was converted from a mere contribution into another
income tax, it was "only" charged at 9%. But that was back in the days
when the *basic* rate of income tax was still *37.5%* (and I can
remember paying it at 42.5% under Wilson), but the total at the margin
was then 37.5% + 9% = 46.5%.

When Brown took over, 23 years later, the basic rate had been reduced
from 37.5% to 23% and the NI rate had been increased to 10% (a total of
33%, down from Callaghan's 46.5%).

Are you including the employers "contribution", too? It's been a while
since I operated PAYE (and 27 months since I paid any NIC) so I'm totally
adrift with the numbers.

No. The employer's levy is on top of those figures.

Thanks. That's what I suspected.

Employers NI is 13.8% and has no upper limit.
employees NI is 12% up to about £45,000 and then
another 2% is added.

My April 1974 P60 shows :-

Gross pay £1258.79

less

Superannuation £75.40
Employees NI grad. £18.76
Income tax £175.05

So NI (or its predecessor) was a lot less than tax
for most people in 1974, where as now it is a
significant chunk.

The upper tax bands went up to 83% with another 15%
investment income surcharge making 98% for those
unfortunate to be 'better off'.

However CGT was only 30%.

British Workers Wanted - Channel 4
 

In article ,
Huge wrote:
So NI (or its predecessor) was a lot less than tax
for most people in 1974, where as now it is a
significant chunk.

That's because of Government promises not to increase income tax being
"end run" around by increasing NIC instead.

Of course. A tax where you pay more the higher your income isn't what
those in power want.

--
*A cubicle is just a padded cell without a door.

Dave Plowman London SW
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