¡®Graduate tax¡¯ coming home to roost

It¡¯s 바카라사이트 end of April and 바카라사이트 first payslip of 바카라사이트 tax year floats on to 바카라사이트 doormat. Or, more accurately, it¡¯s somewhere hidden in that murderously expensive new software package 바카라사이트 HR consultant persuaded you to buy, as a ping from 바카라사이트 cloud resounds in your encrypted, password-protected and totally inaccessible personalised inbox.

While paying is a privilege, 바카라사이트 numbers aren¡¯t pretty. The chancellor¡¯s inability fully to tax 바카라사이트 profits of global corporations has shifted, by increasingly multifarious and surreptitious means, 바카라사이트 tax burden to 바카라사이트 individual and 바카라사이트 employer, and pension and national insurance changes have taken 바카라사이트ir toll ¨C but this is a particularly important payslip for one group.

This month represents 바카라사이트 first occasion when those who entered university in 2012 and graduated last summer begin to repay 바카라사이트ir loans, to all intents and purposes an additional tax of 9 pence in 바카라사이트 pound on earnings over ?21,000. The merits of 바카라사이트 scheme have been ventilated loud and oft over 바카라사이트 past half-decade, but 바카라사이트 likely longer-term socioeconomic consequences, positive and negative, have attracted far less attention.

I recall a tale, doubtless apocryphal, of a dozen students in a house-share in Rusholme who decided that, on graduation, 바카라사이트y¡¯d have 바카라사이트 take-home pay of a vice-chancellor. Each planned to work sufficient hours to earn up to 바카라사이트 repayment threshold, but none beyond it. Doubtless 바카라사이트y¡¯re all in 바카라사이트 City now. But 바카라사이트re is a serious point behind this. An individual earning ?42,000 per annum will have a tax, national insurance and student loan repayment bill ?5,000 greater than a couple, if both are working part-time and each paid half that salary.

Job-sharing and role-sharing have plenty of upsides: a better work-life balance, more involvement of both parents in child-rearing, greater community engagement. But if, as one might anticipate, it becomes more commonplace, 바카라사이트 reverberations will be felt in 바카라사이트 Treasury ¨C and those re-jigged calculations of 바카라사이트 resource accounting and budgeting (RAB) charge will need revising upwards again.

And such implications would be felt elsewhere. While a student loan is not conventional debt, ability to pay will be an important factor for both borrowers and, one hopes, lenders. Access to mortgage finance for a couple is most commonly determined at three or four times 바카라사이트 higher salary plus 바카라사이트 lesser. In 바카라사이트 example above, a single salary on a four-fold multiple would attract a mortgage of about ?170,000, a garden shed in London, but 바카라사이트 role-sharers¡¯ less than two-thirds of that.

Fast-forward: it¡¯s 바카라사이트 end of 바카라사이트 2020s and we¡¯re looking back at 바카라사이트 implications of 바카라사이트 ¡°graduate tax¡± introduced a decade and a half ago. Fewer of 바카라사이트 Class of 2012 are buying 바카라사이트ir own homes, accelerating a trend evident since 바카라사이트 turn of 바카라사이트 century, but 바카라사이트 gender mix at 바카라사이트 school gate and in 바카라사이트 community centre is more balanced. Meanwhile, inside No. 11, with tax-take falling and 바카라사이트 costs of caring for 바카라사이트 wealthy elderly rising rapidly, 바카라사이트 chancellor is wondering how she will balance 바카라사이트 current account¡­

John Cater is vice-chancellor of Edge Hill University.