Income tax bands - SV650.org

G · 20-01-11, 03:21 PM

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

timwilky · 20-01-11, 03:28 PM

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.

L3nny · 20-01-11, 03:28 PM

Serves you right for being corporate fat cats

20-01-11, 03:31 PM

Must be really tough getting stopped a bit more money out of your £50k + salaries

No worries for me, i have earnt £100 this week thus far.

G · 20-01-11, 03:32 PM

Quote:

Originally Posted by timwilky

What sounds like a good salary increase etc. is peanuts once the government grabs their chunk.

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.

20-01-11, 03:33 PM

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

G · 20-01-11, 03:34 PM

Quote:

Originally Posted by specialone

Must be really tough getting stopped a bit more money out of your £50k + salaries

Tax band figures are before tax.

L3nny · 20-01-11, 03:36 PM

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??

20-01-11, 03:37 PM

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

Luckypants · 20-01-11, 03:51 PM

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?

20-01-11, 03:21 PM	#1
G Member Mega Poster Join Date: Apr 2007 Posts: 3,770	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 __________________ 6.67300 × 10-11 m3 kg-1 s-2 Last edited by G; 20-01-11 at 03:22 PM.

20-01-11, 03:28 PM	#2
timwilky Member Mega Poster Join Date: Mar 2004 Location: Not in Yorkshire. (Thank God) Posts: 4,116	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. __________________ Not Grumpy, opinionated.

20-01-11, 03:28 PM	#3
L3nny Member Mega Poster Join Date: May 2008 Location: MK Posts: 2,111	Re: Income tax bands Serves you right for being corporate fat cats __________________ 2015 GS 1200 Adventure

20-01-11, 03:31 PM	#4
Specialone Guest Posts: n/a	Re: Income tax bands Must be really tough getting stopped a bit more money out of your £50k + salaries No worries for me, i have earnt £100 this week thus far.

20-01-11, 03:33 PM	#6
Reeder Guest Posts: n/a	Re: Income tax bands I didn't get a pay rise. I'm firmly in the 20%. Quit bitching.

20-01-11, 03:36 PM	#8
L3nny Member Mega Poster Join Date: May 2008 Location: MK Posts: 2,111	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?? __________________ 2015 GS 1200 Adventure

20-01-11, 03:37 PM	#9
Reeder Guest Posts: n/a	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.

20-01-11, 03:51 PM	#10
Luckypants Moderator Mega Poster Join Date: Jul 2003 Location: Nr Ruthin Posts: 7,079	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? __________________ "Your Viffer sounds like it is raising hell! Spot on." - Witchery 17/4/08 Snow Plough Appreciation Society - Member #3

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