Income tax bands

[MisterTommyH]

So if you're on £34500 you're in the 20% bracket. You get a £1k rise and end up on $35500 in the 40% bracket......

Could you end up in a position where you get a payrise and take less home;

Whats the optimum amount beneath £35000 to earn to do this; and

How much about £35000 would you have to get to make that payrise worth it?




I don't really understand payroll stuff. I just know they put the decimal point in the wrong position every month.

[Dave20046]

Originally Posted by Tommy H

So if you're on £34500 you're in the 20% bracket. You get a £1k rise and end up on $35500 in the 40% bracket......

Could you end up in a position where you get a payrise and take less home;

Whats the optimum amount beneath £35000 to earn to do this; and

How much about £35000 would you have to get to make that payrise worth it?




I don't really understand payroll stuff. I just know they put the decimal point in the wrong position every month.

Did you read my post above? In your example only £500 is over the threshhold and liable to 40% taxation. You still pay your 20% on the rest.

[MisterTommyH]

Lol,

Yeah I read it, typed it, and the didn't understand it until after I'd posted.

I was thinking that no one would ever want the payrise if that could happen. Knew it couldn't be right, but couldn't see how else it worked.

Think I understand it now though.

[G]

I get it now, clearly didn't understand the system before.

It's not all bad for me afterall thank god. At the moment I have been paying £30 a month to the taxman in company car tax when I technically don't have a company car. So I'm due a £240 rebate in April(I won't be holding mr breath though), so from April I should be £30 better off when my tax code resets, £17 better of from the allowance increase and £60 better of from my payrise. £107 in total woop.

Imagine if you worked hard enough to earn £1m, to only end up getting 60% of £850000... Damn that would **** you off, it's no wonder people leave for tax havens!

Hmmm, CIE, then this, sneak it through seems to be the new governments policy on new legislation/changes.

I see this government are doing a great job!

I havent heard much good come from them,

roll on election time.

Originally Posted by kwak zzr

I see this government are doing a great job!

I havent heard much good come from them,

roll on election time.

Dont say that Daz, theyre only doing it becasue of the previous regimes mis-management of uk coffers, so vote them out and the problem is back.

The popular governments are always the ones who dont have to make difficult decisions, if we dont stop the rot now, we are doomed.

I see they have already agree'd to sell off the company i work for.

Originally Posted by kwak zzr

I see they have already agree'd to sell off the company i work for.

Yeah and that would have happened even if labour stayed in.

Originally Posted by Dave20046

You are correct, was just about to say this.

So G if you're on 35k and your 2.5 % payrise puts you up to £35,352.50 you'll be paying 40% on that £352.50....
Imagine that's good news if you were expecting to be giving away 40% of your £35 odd k

Wrong! It's your personal allowance and then 35k on top.