Anybody any good with income tax
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!
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If you're just on PAYE there's not much an accountant can do for you
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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
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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.
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Originally Posted by 1509joe
(Post 12037722)
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.
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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 |
Originally Posted by the shreksta
(Post 12037717)
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
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. |
Originally Posted by the shreksta
(Post 12037717)
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
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. |
Originally Posted by Henrik
(Post 12037788)
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 |
What @Technopug, @Urban, @Henrik, and @Gordo said above.
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Originally Posted by the shreksta
(Post 12037717)
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
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Originally Posted by ^Qwerty^
(Post 12037792)
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?
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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