Comment by cs02rm0
9 days ago
This may be slightly chicken and egg; it's the 95th percentile of salaries partly because no one wants to take a salary above that. Instead they use salary sacrifice, pensions, dividends, capital gains, leaving money in personal service company, etc. anything to avoid having a personal paper income above that threshold.
I suspect it's nowhere near the 95th percentile of earned wealth.
I don't think this hypothetical behaviour would change the 95th percentile or any percentiles below it, would it?
If the income of everybody above the 80th percentile dropped to be equal to the 81st percentile, the 80th percentile income wouldn't change the ones above would just be very closely bunched.
(Last time I checked the opposite was true and they got more spread out)
I think it would, once you put in place mechanisms to move your income down to below £100k, you can and probably should tweak them further to reduce your tax bill even further.