Goes up to 2% in new tax year doesn't it? Can't find out how to calculate the effect on salaries etc ... anyone know ie is it an extra 1% of total salary or something else? Fookin taxes

Whilst trying to find it I noticed that whilst the tax free amount rises to c£7500 this year the 20% rate only applies to c£35k ie a few £k less than 2010-11 giveth with one hand & taketh (more) with the other!

TX.

 

It's an additional 1% tax above about £42k. Nice, huh? Top rate tax is now an all-in 52% (before adding on VAT, fuel duty, travel tax etc etc). Then the liberal clowns also want to tax houses (e.g. capital gains on your main residence). It's not the way to drive a sustainable recovery and ceased to be funny long ago. Thanks to the previous Government for the parlous state of the nation's finances!

http://www.hmrc.gov.uk/rates/nic.htm

 

^^ That link is gobbledegook to me FFS

TX.

 

Blimey life was good for me in 2004 ...........


Shaun

 

You pay nothing on earnings up to £110/week. Then 11% up to £844 then 1% on earnings above that limit.

Next year those percentages become 12% and 2% respectively, while the upper earnings limit reduces slightly.

If a lot of your income is above £44k pa then you will pay twice as much NI on that portion.

 

National Insurance, whats that

 

The higher rate threshold is currently £43,875, this is dropping to £42,475 next month so any earnings over this amount will be taxed at 40% income tax and 2% national insurance.

The personal allowance has been increased from £6,475 to £7,475 but because of the drop in the higher rate tax threshold above, higher rate payers will not benefit from this. Infact, they will be worse off due to the double whammy of the national insurance rise.

Currently 11% upto £43,875 and 1% above. Next month will be 12% upto £42,475 and 2% above

Swines

 

^^ Grrrr, will be "interesting" to see Aprils payslip then

Is NI capped at all or do you pay 2% on everything above c£44k?

TX.