I need some guidance regarding income tax and my new pay rise but would rather PM than make it public.

Cheers

 

Speak to a tax accountant. Google search a local firm to you. Not a book keeper!

 

If you're just on PAYE there's not much an accountant can do for you

 

so ive spoken to somebody and they have confirmed my worst fears...............40% tax will hammer me. if i dont actually watch my wages like a hawk i could actually end up worse off with my new pay-rise...........dont you just love the uk

 

Quite a few of my mates who are self employed have to stop work at the end of the year so they don't go up into the next tax bracket.

 

Its bollocks mate, the amount increases next year to 50k before the 40% kicks in so I will just monitor my overtime and run it as close to 50k as possible. Should still see me nearly 10k a year better off.

 

 

You'll only be paying 40% on income above £46351, anything between 11800 and 46350 will be at 20%.
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.

 

Whoever you have spoken to doesn't have a clue!

Would you rather have a £0 pay rise or a £1000 pay rise but pay 40% tax on it?
£0 or £600, £0 or £600, £0 or £600.....

 

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.

 

Unless things have changed, CB is indeed stupid. If one parent earns £60K you get zero CB, but if two parents earn £50k each they get the full amount. Guess which household has the most disposable income?

 

What @Technopug, @Urban, @Henrik, and @Gordo said above.

 

As the others have said, you'll not end up worse off. Just means your overtime after a certain point isn't as rewarding!

 

Yep, CB is still stupid. Also one thing that not everyone knows is that even if you are not claiming it because spouse at home, he/she needs to register something with the inland revenue, otherwise he/she will be adversely affected when claiming pension (because fewer years worked)

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.