Anybody any good with income tax
#7
Not sure I get the logic.
You pay an extra 10% tax above the threshold (20% income tax plus 12% NI below, 40% income tax plus 2% NI above).
If you earn more, then you only pay the higher rate on the amount above the threshold - why do you think you’d be worse off?
Gordo
You pay an extra 10% tax above the threshold (20% income tax plus 12% NI below, 40% income tax plus 2% NI above).
If you earn more, then you only pay the higher rate on the amount above the threshold - why do you think you’d be worse off?
Gordo
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#8
Scooby Regular
iTrader: (1)
You'll also be part of a pension scheme, so depending on how that is setup, you can claim back tax relief on the portion you pay 40% tax on.
Do you get a mileage rate for travel, if your employer doesn't pay full wack, you should be able to claim back the difference from the tax man.
Last edited by urban; 12 December 2018 at 01:27 PM.
#10
Scooby Regular
iTrader: (5)
Shreksta, Google "UK salary calculator".
There are some stupid things in the UK tax code, but I think as per the above posters, you'll almost be better off with a higher income than not.
Annoyances include:
- child benefit being reduced from full to 0 when income goes from 50k to 60k and above if either parent earns above the threshold
- 30h free childcare for anyone earning up to 100k (I think), but only 15h if above.
- between about 100k and 123k, you loose all your personal allowance... This means you'll pay 65% tax in that band, but still be better off with a rise (except if you have children in daycare).
- above 150k (I think) they start reducing the amount you can put into your pension tax free.
There are some stupid things in the UK tax code, but I think as per the above posters, you'll almost be better off with a higher income than not.
Annoyances include:
- child benefit being reduced from full to 0 when income goes from 50k to 60k and above if either parent earns above the threshold
- 30h free childcare for anyone earning up to 100k (I think), but only 15h if above.
- between about 100k and 123k, you loose all your personal allowance... This means you'll pay 65% tax in that band, but still be better off with a rise (except if you have children in daycare).
- above 150k (I think) they start reducing the amount you can put into your pension tax free.
#11
Scooby Regular
Shreksta, Google "UK salary calculator".
There are some stupid things in the UK tax code, but I think as per the above posters, you'll almost be better off with a higher income than not.
Annoyances include:
- child benefit being reduced from full to 0 when income goes from 50k to 60k and above if either parent earns above the threshold
There are some stupid things in the UK tax code, but I think as per the above posters, you'll almost be better off with a higher income than not.
Annoyances include:
- child benefit being reduced from full to 0 when income goes from 50k to 60k and above if either parent earns above the threshold
#13
Scooby Regular
As the others have said, you'll not end up worse off. Just means your overtime after a certain point isn't as rewarding!
#14
Scooby Regular
iTrader: (5)
About the 100k limit, granted not a lot of people will be hit by it, but IMO that's a real fscker if you are working with kids in daycare.. it would mean that if you did just earn say between 0 and 5000 over the limit, there is a real risk that you would *actually* be worse off, especially as they'd be taking their 65% tax as well. Together with the loss of 15h childcare per week you'd be into well over 100% tax rates there.
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