From: "Andy Pandy" 
Newsgroups: uk.business.accountancy uk.finance
Subject: Re: NI, tax and part time jobs
Date: Fri, 5 Sep 2003 19:58:29 +0100


"Tim"  wrote in message news:bja7cq$h9r$1@sparta.btinternet.com...
> > Yes, with HB/CTB plus tax credit reductions it works out to an effective
> > marginal tax rate of 95.5% for a basic rate tax payer!
>
> Perhaps just goes to show what a "good deal" those on lower incomes are
> getting, compared to those on slightly higher incomes!

Or even very much higher incomes. A bit of an extreme example I know, but
following a query on uk.gov.social-security from an unemployed man with 7 kids,
I worked out he'd have to earn around £45000 to be just 10% better off than on
the dole. The tax credits and benefits systems are very helpful to families on
low incomes, and independant taxation is very un-helpful to families on
average/above average incomes.

--
Andy