pinkhelmets
Inactive User
Yeh another thread about how fkd up this nation is, but I cant believe this kinda stuff is never in the news....
So you can understand what i'm talking about I'll do a quick rough example of someone poor on low income-
Working with basic income of £600 a month.
Tax credits are awarded to help with survival ~add around £400 a month.
= £1000 which is agreed its enough to live, not much prospects of decent lifestyle.
Now say this person wants to do overtime to try and get out of poverty...
Already in place is a 90% tax charge on overtime that low income people on tax credits have to pay. This really isnt widely known publically, but it is the truth. For every £10 you earn extra you will lose £9 of your tax credit leaving you with the £1 for your extra work.
-Those on low income have accepted this ridiculous percentage and still do overtime because you can spend it quick and just end up in debt to the tax credit office.
####Not really an incentive for workers to do overtime though, knowing they will pay back 90% of their overtime and I guess thats why its kept secret and not widely known.
Anyhow, then we sometimes have Child support to consider. Now in this example, with 2 children to pay support for, this is worked out at 35% on wages but not including tax credits (fkn stupid high amount that nobody agrees is sensible btw). So if you do find extra work (overtime) then the tax credit get taken away and you will be due to pay 35% on the extra bonus money earned!
~~~This means that poor people pay 125% tax on overtime! WTF surely I must be wrong or this kinda stupidness would be in the news?? Surely!?
Hell no, the example figures arent the only time this works, its the same with ALL low income workers on tax credits with 2 children with an old partner. If you do overtime to earn £100 you will owe the tax office £90 of it and child support £35 of it.... meaning you lose £25 overall for your extra effort.
The economy in this country really has been screwed up by the rich who have no idea of reality. No wonder the official figures show the poor are getting poorer while the richest are the only ones getting richer. I wonder if bankers would pay 125% tax on their bonus payments? Bet they wouldnt even pay the 90% all tax credit claimers have to accept.
Its fkd up, and this stupidity honestly isnt just with my example. If you look into these calculations its the same for the masses, singles or families etc. No wonder nobody wants to work, especially if you ever have children. Of course we all know you get more money & benefit if you dont work at all or you're a single mum, but I'm talking about the decent people who really try but arent allowed to succeed.
So you can understand what i'm talking about I'll do a quick rough example of someone poor on low income-
Working with basic income of £600 a month.
Tax credits are awarded to help with survival ~add around £400 a month.
= £1000 which is agreed its enough to live, not much prospects of decent lifestyle.
Now say this person wants to do overtime to try and get out of poverty...
Already in place is a 90% tax charge on overtime that low income people on tax credits have to pay. This really isnt widely known publically, but it is the truth. For every £10 you earn extra you will lose £9 of your tax credit leaving you with the £1 for your extra work.
-Those on low income have accepted this ridiculous percentage and still do overtime because you can spend it quick and just end up in debt to the tax credit office.
####Not really an incentive for workers to do overtime though, knowing they will pay back 90% of their overtime and I guess thats why its kept secret and not widely known.
Anyhow, then we sometimes have Child support to consider. Now in this example, with 2 children to pay support for, this is worked out at 35% on wages but not including tax credits (fkn stupid high amount that nobody agrees is sensible btw). So if you do find extra work (overtime) then the tax credit get taken away and you will be due to pay 35% on the extra bonus money earned!
~~~This means that poor people pay 125% tax on overtime! WTF surely I must be wrong or this kinda stupidness would be in the news?? Surely!?
Hell no, the example figures arent the only time this works, its the same with ALL low income workers on tax credits with 2 children with an old partner. If you do overtime to earn £100 you will owe the tax office £90 of it and child support £35 of it.... meaning you lose £25 overall for your extra effort.
The economy in this country really has been screwed up by the rich who have no idea of reality. No wonder the official figures show the poor are getting poorer while the richest are the only ones getting richer. I wonder if bankers would pay 125% tax on their bonus payments? Bet they wouldnt even pay the 90% all tax credit claimers have to accept.
Its fkd up, and this stupidity honestly isnt just with my example. If you look into these calculations its the same for the masses, singles or families etc. No wonder nobody wants to work, especially if you ever have children. Of course we all know you get more money & benefit if you dont work at all or you're a single mum, but I'm talking about the decent people who really try but arent allowed to succeed.
