Income tax bands
 

I never knew they were reducing the amount you needed to earn to qualify for the 40% tax band!

For 2010 - 2011

20% = £0 - £37400
40% = £37400 to £150000
50% = £150000+

For 2011 - 2012

20% = £0 - £35000
40% = £35000 to £150000
50% = £150000+

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

So from April for everyone earning over the £35k, instead of getting 80% of your bonus AND car allowance... you will now only get 60% of it

Not to mention only getting 60% of that £2400 instead of 80% of it! So about £40 a month worse off when it kicks in, not including loosing 20% of your car allowance and bonus.

Nice

Re: Income tax bands
 

Having been a higher rate payer for god knows how long. I really wish I was in the new 50% bracket. What sounds like a good salary increase etc. is peanuts once the government grabs their chunk.

Also isn't it about time personal allowances were increased to reflect the true cost of living. something is wrong when a person on the national minimum wage has to pay income tax on a weeks earnings.

Re: Income tax bands
 

Serves you right for being corporate fat cats :p

Re: Income tax bands
 

Must be really tough getting stopped a bit more money out of your £50k + salaries :rolleyes:
No worries for me, i have earnt £100 this week thus far.

Re: Income tax bands
 

Thats what I was working out when I came across the tand band figures.

My 2.5% January pay rise on paper looks great, until after the taxman has finished playing around in April.

Re: Income tax bands
 

I didn't get a pay rise. I'm firmly in the 20%. Quit bitching.

Re: Income tax bands
 

Tax band figures are before tax. :confused:

Re: Income tax bands
 

So an extra tenner is being taken from your £670+ weekly earnings. It's hardly going to put you in the poor house is it??

Re: Income tax bands
 

Tax band figures are after your personal allowance too. So you don't get taxed 40% until you earn over £40k a year.

Re: Income tax bands
 

It appears they are doing this to prevent 40% tax payers benefiting from the £1000 increase in personal allowance. Apparently tax neutral for higher rate payers, but I would like to see the figures on that, because to make it neutral surely the threshold just comes down by 1K?