Peoples Outlook for 2019

For LTA calculations, yes perhaps, but not for AA calculations, which is the main problem here leading to the massive disincentives. 

I was under the impression that some consultants do private work as well as NHS that boosts salaries of some medical professionals to higher levels. 100k for 34 years experience for a medical specialist is underpaid in my opinion, especially given the level of stress and responsibility involved - you make the wrong decision it could cost someone their life or land you in the middle of a law suit that will destroy your career. I know plumbers and tattoo artists who earn more than that (although they run their own businesses).

Buy land.

The tax system is a mess because governments use sleight of hand to pretend taxes are not being increased.

My understanding is that there is a top tax rate of 45%.

Pension contributions earn tax relief at 40% on up to £40k/year, with a complex lifetime limit.

Personal tax allowances are withdrawn at incomes around £100k, creating a nasty step effect where the tax rate on marginal increases is higher than the tax rate on someone earning £200k

National insurance ( a tax on earned income - not savings or pensions - but still a tax) is levied at different salary ranges to income tax, and the bulk is levied on incomes below £45k.

I suspect that few very high earners happily pay their taxes and instead use service companies, company dividends, offshore or other methods to reduce tax.


At the benefits end of the scale Working tax credits were introduced by Gordon Brown as a reverse income tax to maintain living standards for the lower paid. These and other benefits rose to fairly high levels acting as a subsidy to employers and possibly a disincentive to work. These benefits have been savagely cut under Universal Credit and the taper which reduces benefits as income rises means the lowest paid can have an effective tax rate of 60%.

Accepting that unemployment nationally is at 4%, in my area (Teesside) it runs at 10%. Housing is plentiful and cheap (New 3 bed semis at £150k) but jobs are few. Young people can leave the area to find work, but then are hit by the astonishingly high cost of housing in prosperous areas.

A lot to sort out, and probably not achievable until we get some honest politicians.

For what it's worth I would do the following

Remove all income tax allowances. Set the personal tax allowance at £15k for everyone. Merge National Insurance with income tax, compensating pensioners with a higher state pension and savers with simpler and better ISA's. Tax rates at 20, 40 and 60%.

Tax the tech companies heavily.

Build significantly more houses. Probably using factory built components.

Meanwhile, the Brexit Circus resumes next week.

The NHS is basically run on the cheap. Money is required, a lot of it. Personally, I think we need to move to a government subsisidised partial insurance system. The NHS cannot continue to provide free care, to everybody, for everything, in a high quality / expedient manner.

Basically, it’s ed. I do love my job though

With regards to NHS Final salary I was lucky enough to transfer mine out to a SIPP before that option was removed (thanks Mr. Osborne).  This allows me to decide my income and even how much taxable income I take from my crystallised fund. I restrict income to 21% Tax  and invest what I don’t use and make back tax paid within 18 months 

For past 4 years it meant a income substantially greater than my pension would be and If required I still have a few hundred £K I can access which would not be available were I to stay in NHS pension . Also my beneficiaries get my full fund balance Tax free .

As my SIPP down a lot over last 6 months I will only be taking my tax allowable £11800 this tax year until things improve. 

As my state pension not payable for a few more years I hope by then to move all funds into Tax free investments and the flexibility of managing my own funds makes this possible. I still add my SIPP allowance to an uncrystalysed SIPP for even more flexibility.