40% tax band

DRZ · 6 Apr 2011 at 09:21

KaHn said:
Not when you see a monthly pay packet of 14k have 6k taken off it in tax/ni

KaHn

I am literally amazed that someone earning that much is still in the PAYE system.

arknor · 6 Apr 2011 at 09:22

KaHn said:
Not when you see a monthly pay packet of 14k have 6k taken off it in tax/ni

KaHn

you could always get a lesser paid job if you want to pay less taxes...

a lot of people would jump at the chance to lose 6k in TAX/NI (4x your salary is 220k anyway acording to your post history so how are you earning enough each month to lose 6k?)

or is this just bullpoop

J.T · 6 Apr 2011 at 09:23

arknor said:
you could always get a lesser paid job if you want to pay less taxes...

a lot of people would jump at the chance to lose 6k in TAX/NI

I would!

CAT-THE-FIFTH · 6 Apr 2011 at 09:28

KaHn said:
Not when you see a monthly pay packet of 14k have 6k taken off it in tax/ni

KaHn

That is around £72000 in tax!! :eek:

However, consider this what you pay in tax most families in the UK won't even before tax. I know it sucks but still it could be worse. IIRC,taxation rates in the 1970s were 95% for the highest band.

arknor · 6 Apr 2011 at 09:29

CAT-THE-FIFTH said:
That is around £72000 in tax!!

However, consider this what you pay in tax most families in the UK won't even before tax. I know it sucks but still it could be worse.

look at his post history the bit about a mortage is good.

he says he can get 4x his wage acordsing to the ING calculator but would need 10% as a deposit 22k :confused:

im retarded or the maths dont add up ?

KaHn · 6 Apr 2011 at 09:30

DRZ said:
I am literally amazed that someone earning that much is still in the PAYE system.

I'm 26 another 2yrs before I'm chartered and in a senior enough position that I'll want to go contract. Also benefits to being staff like companies paying for MScs and other courses.

As for complaining I only am as the people who are self employed and do doctor their taxes is a joke.

KaHn

zootfloot · 6 Apr 2011 at 09:31

Ok, maybe this isnt the right place to post this but i could do with a bit of help regarding my dads tax code.

He received a letter from HMRC saying that his tax code is changing to 229, this due to him being payed his state pension and working at the same time.

He is 67 years old, earned about 37k last year, was paid 5k ish state pension.

Does this seem right, he has always been terrible with money...i told him he should have deferred his pension while he still wanted to work but he didnt get round to doing it.

Am i right in thinking his code has changed because he hasnt paid enough tax last year?

DRZ · 6 Apr 2011 at 09:35

KaHn said:
I'm 26 another 2yrs before I'm chartered and in a senior enough position that I'll want to go contract. Also benefits to being staff like companies paying for MScs and other courses.

As for complaining I only am as the people who are self employed and do doctor their taxes is a joke.

KaHn

You could certainly afford to pay for the MSc in the tax savings alone! Fair play if waiting is the best route for you though (especially in these unstable times).

You'd be somewhere in the region of £3,000 a month better off by contracting at your current day rate, but obviously your daily rate will increase when you do contract so you are quids in!

KaHn · 6 Apr 2011 at 09:36

arknor said:
a lot of people would jump at the chance to lose 6k in TAX/NI (4x your salary is 220k anyway acording to your post history so how are you earning enough each month to lose 6k?)

or is this just bullpoop

Current salary is 55k with the standard benefits

Offshore uplift is 180/day per week day + 450/day per weekend, a month (4 week standard on vessels) will mean my pretax salary jumps to over 13k with travel etc last time I did that I had 6k in deductions that may of included student loan aswell.

KaHn

KaHn · 6 Apr 2011 at 09:39

DRZ said:
You could certainly afford to pay for the MSc in the tax savings alone! Fair play if waiting is the best route for you though (especially in these unstable times).

You'd be somewhere in the region of £3,000 a month better off by contracting at your current day rate, but obviously your daily rate will increase when you do contract so you are quids in!

Problem is contractors don't get internal promotions or given the chance to try something new without taking on financial risk. But that's by the by.

KaHn

Abraham · 6 Apr 2011 at 09:52

KaHn said:
last time I did that I had 6k in deductions that may of included student loan aswell.

KaHn

You won't have Student Loan deductions for very long at all at that rate though

Will Gill · 6 Apr 2011 at 10:00

tax blows

this is one of my customers personal tax bills! lucky so and so

WillyNelson · 6 Apr 2011 at 10:01

Athanor said:
So if you earn £100k pa you pay

£0 - £7475 @ 0% =£0
£7475 - £35,000 @ 20% = £5505
£35,001 - £100k @ 40% = £25999

Giving a total of £31,504 paid in tax *shudder*.

Almost right

£0 - £7475 @ 0% (Your tax free Personal Allowance)
£7475 - £42,475 @ 20% (The first £35,000 above the PA)
£42,476 - £192,476 @ 40% (The next £115,000 - brings you up to £150,000 above the PA)
£192,477+ @ 50% (Anything you earn over £150,000 above the PA)

cu3ed · 6 Apr 2011 at 10:12

If youre on 17K does it make any difference?

I thought I might be better off, but looking at the numbner posted im not so sure.

TriedandTested · 6 Apr 2011 at 10:16

Will Gill said:
this is one of my customers personal tax bills! lucky so and so

Good lord! :cool:

a1ex2001 · 6 Apr 2011 at 10:16

KaHn said:
Not when you see a monthly pay packet of 14k have 6k taken off it in tax/ni

KaHn

That would be a happy day! I haven't looked at a pay slip in nearly two years so have no idea what deductions I pay I only see the money going into my account and if 8k was hitting it in a month I wouldn't be worrying about such boring things as tax I'd be to busy enjoying myself.

Abraham · 6 Apr 2011 at 10:20

cu3ed said:
If youre on 17K does it make any difference?

I thought I might be better off, but looking at the numbner posted im not so sure.

Yes, you should be slightly better off.

daz · 6 Apr 2011 at 10:21

chimaera said:
I've got no problem with paying my taxes like a good citizen, however i do think our whole country needs to be re-evaluated in terms of wealth.

I'm now in the 40% tax band yet can only afford the mortgage on a 1 bedroom flat in which i live with my wife and baby daughter, we're labelled as 'high income earners' yet i can't afford a car as the monthly running costs will eat too far into my family budget. I can move to a cheaper area yet that won't offset the increased commuting cost, or i can find a lower paid job in a cheaper part of the country, which again doesn't make a huge difference.

We're actually leaving to live in the USA next month which is bitter-sweet for me, i want to stay here but there is something terminally wrong with a country when someone earning over £35k cannot afford an average sized 2-3 bedroom family home. For all it's faults the USA still has some semblance of normality, whereas someone earning an average wage can afford an average home for their family and comfortably live.

I consider myself hugely fortunate to have options but can't avoid the fact that something is not right with this country where an average family gets hit by taxes that were originally envisaged for the rich (e.g. inheritance).

Seriously, draw up a monthly budget in Excel, find out *exactly* where all of your monthly money is going. Every expenditure down to the dot... It might surprise you where you can make savings.

cu3ed · 6 Apr 2011 at 10:22

You mean like a tenner then lol...in the world of TAX the words slighty better mean...nothing noticable.....the slightly worse....means your about to be slightly raped.

platypus · 6 Apr 2011 at 10:25

daz said:
Seriously, draw up a monthly budget in Excel, find out *exactly* where all of your monthly money is going. Every expenditure down to the dot... It might surprise you where you can make savings.

Yep. Monthly budgeting takes a while to set up but once you're doing it it's easy.