April 2008 Income tax 22% down to 20%

Updated table

£10,000 - £724.09 / £715.63 (-£8.46 pm)
£11,000 - £779.93 / £773.13 (-£6.80 pm)
£12,000 - £835.76 / £830.63 (-£5.13 pm)
£13,000 - £891.59 / £888.13 (-£3.46 pm)
£14,000 - £947.43 / £945.63 (-£1.80 pm)
£15,000 - £1003.26 / £1003.13 (-£0.13 pm) Break Even Point
£16,000 - £1059.09 / £1060.63 (+£1.54 pm)
£17,000 - £1114.93 / £1118.13 (+£3.20 pm)
£18,000 - £1170.76 / £1175.63 (+£4.87 pm)
£19,000 - £1226.59 / £1233.13 (+£6.54 pm)
£20,000 - £1282.43 / £1290.63 (+£8.20 pm)
£21,000 - £1338.26 / £1348.13 (+£9.87 pm)
£22,000 - £1394.09 / £1405.63 (+£11.54 pm)
£23,000 - £1449.93 / £1463.13 (+£13.20 pm)
£24,000 - £1505.76 / £1520.63 (+£14.87 pm)
£25,000 - £1561.59 / £1578.13 (+£16.54 pm) UK National Average
£26,000 - £1617.43 / £1635.63 (+£18.20 pm)
£27,000 - £1673.26 / £1693.13 (+£19.87 pm)
£28,000 - £1729.09 / £1750.63 (+£21.54 pm)
£29,000 - £1784.93 / £1808.13 (+£23.20 pm)
£30,000 - £1840.76 / £1865.63 (+£24.87 pm)
£31,000 - £1896.59 / £1923.13 (+£26.54 pm)
£32,000 - £1952.43 / £1980.63 (+£28.20 pm)
£33,000 - £2008.26 / £2038.13 (+£29.87 pm)
£34,000 - £2064.09 / £2095.63 (+£31.54 pm)
£35,000 - £2121.26 / £2153.13 (+£31.87 pm) Maximum sweet spot
£36,000 - £2185.43 / £2210.63 (+£25.20 pm)
£37,000 - £2249.59 / £2268.13 (+£18.54 pm)
£38,000 - £2313.76 / £2325.63 (+£11.87 pm)
£39,000 - £2377.93 / £2383.13 (+£5.20 pm)
£40,000 - £2439.47 / £2440.63 (+£1.16 pm)

Note :- NI Upper will be increased from £34840 to £40040 (It was 11% upto £34840 and 1% after. From April 08, it will be 11% upto £40,040 and 1% after and the reason as to why after £35,000 the gains drop)

Cannot progress the table beyond £40,000 as the new 40% IT threshold has not been set yet. (Due March 08) It is currently set at £39825

Or are the government clawing some of that back with raising N.I?

What the Government gives with one hand, it takes more back with the other.

oo, does that mean i get some extra money back?

im on the 25-30k band

Don't forget the NI band has been aligned with the Higher Rate Tax band.

Thats why i done the calculations to £40000 as it then begins to get complicated with the increased N.I and the 40% tax band.

Salaries from around £16000-£40000 will benefit

Thats good news for me if its true, every little helps!

I'm a little out of touch I know, but does anyone still earn under 40k on this BBS? What's the minimum wage?

Pete!!! Wrong id

I wish I earned 40k!!!!!!!

I remember the days when I earned 40K - Ahhhhh

Good news for me but I'm sure Gordon will get it back from me some way or other.

Chip

I get paid in peanuts so how does that effect my tax?

it is way to complex this working out but I doubt I will be any better off lol, Gordon will find another way to take it back...oh hold on 2p on petrol thats it.

If those figures are correct, looks like I'll be worse off. I don't get paid very much to start with.

That's not Pete - he knows that the Average wage is now £39,585!

Shame petrol will be a £1billion a litre by then

Can you do a savings calculation for an £80k salery please



























I wish

trolling dear

Steal from the poor to feed to the ''rich'' ....Better than a kick in the bollocks i suppose if you earn more than £15000.

Poor people are quite often claiming various credits or benefits from the government so in a round about way they are paying less out of their wage packet each month.
Anyway I always seem to be funding them in government schemes so it's nice to get a reduction for once.

Cannot believe that a so called Labour government would take more tax from the poor and less from the richer people!

Les

Its just based on salary, does take into account anyones actual means, somebody could be on 50k, have a mortgage and 4 kids, high travel costs or a couple with no kids no mortgage and 2 * 50k salaries.

Doesnt take into consideration the people that my wife's friend deals with, few million in the bank, very clever acountants and pay very little tax.

PAYE = FOOKED !

What difference does any of that make? Because someone doesnt have a mortgage and chooses not to have kids they should pay more tax??

Simon

I do believe the American tax system does exactly that.

Have a look here and play with the calculator...

The Salary Calculator - Take-Home

You get rewarded financially for getting married and for each and every child you have

Good idea i think personally

theoretically you dont, unless im thinking wrong. if you have a kid or 2, then youve gotta pay £1000s every year right? so how do you gain by not paying a little tax?

I'm all for this. My gross basic is £44,000 plus I like to hit the overtime now and again and seeing the amount I pay each week in stoppages is downright insulting. I don't mean to brag about it but when you work a lot of hours and have an obscene amount of money deducted from your pay it really pisses you off.

think i gain too. about £22k for a warehouse skivvy in lincs is a pretty good wage. so if that works out to £420 a week topline...

but then again the mrs only works in a factory minimum wage so i dare say what i gain she will lose as we have no children.

oh... joy...

Pah - you want to spawn and get married, you pay for it sucker.

I'm going to spend all my money on beer, pies, cars, CD's, DVD's, Computer games, expensive nights out, and all the other fun stuff.



Work hard at school, get decent grades, get a good job = get royally screwed over by any government in order to pay for those who couldn't bother their **** to do what you did. IMHO.

We in this country get child benefit and tax credits about £150 a month (ish) for a couple earning £25-60k combined. Quite a bit more for those that earn below this.

Actually i dont think you'll benefit much if at all, as your going to be hammered in extra NI contributions. Its only those in the £16-40,000 that will benefit according to all reports. You may actually be slightly worse off.

And go to bed alone every night

Yeah well.. technically I can blame my marital and childless status on the Government anyhow, so thats their fault as well


To be fair, it does seem unfair that those who earn less gain less comparative benefit from an income tax drop - obviously those who earn more will save more from a 2% drop, but to actually end up paying more tax because of it is obviously messed up. I'm guessing I'm going to be about £25 a month better off, but, "in real terms" that means bugger all because inflation will eat all that up before I even get a chance to buy another couple of CD's with it.

True, those that earn less than £15k are being shafted. Millions of people fall into this bracket. Part time workers, retail, clerical etc