Posts tagged "Hicbc"
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6 June 2024 Analysis

The Tories’ accidental 70% tax on people earning £120k

The Conservative Party has just proposed moving the point at which child benefit is phased out from income of £60k to £120k. This will greatly reduce the marginal rate for parents earning £60-80k. But it means that a parent earning £120k who has three children will face a 70% marginal rate. And they’ll face a […]
Marginal tax rate on next £ (IT, employee NICs and child benefit charge) 20% 70% 60% 50% 40% 30% 20% 10% £0 UK marginal tax rate for single earner, family of 3 kids £20,000 £40,000 £60,000 £80,000 £100,000 £120,000 Gross salary (single earner in household with three children} £140,000 £160,000 £180,000
20 November 2023 Analysis

What’s worse than a 71% marginal tax rate? Penalising 19,000 people who don’t understand it.

The UK’s high marginal tax rates on people earning £50k are a disincentive to work. They’re made worse by the way a large chunk of the tax is collected – the “high income child benefit charge” (HICBC). The HICBC creates a “tax trap” for employees who usually wouldn’t file a tax return. If they earn […]

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