El Cid 193 #1 Posted March 2, 2019 I paid - You paid the right amount of Income Tax for 6 April 2017 to 5 April 2018 You paid £10,288.71 I did not think it would be so much, all at 20%? I earned around £40k(including a one-off sum), personal allowance is £11,500? Around £30k of taxable income, so is that because of NI? Share this post Link to post Share on other sites Share this content via...
*_ash_* 87 #2 Posted March 3, 2019 (edited) 19 hours ago, El Cid said: I paid - You paid the right amount of Income Tax for 6 April 2017 to 5 April 2018 You paid £10,288.71 I did not think it would be so much, all at 20%? I earned around £40k(including a one-off sum), personal allowance is £11,500? Around £30k of taxable income, so is that because of NI? I remember when on wage packets, I didn't really notice the NI as it was so little. I was concentrating on the tax paid! It's sneaked up over the years , I think! That's about right. The tax calculator shows about 6k tax and 4k NI on 40k Edited March 3, 2019 by *_ash_* Share this post Link to post Share on other sites Share this content via...
Cyclone 10 #3 Posted March 3, 2019 (edited) Gross Income Taxable Income Tax National Insurance 2018 Take Home Yearly £40,000.00 £28,150.00 £5,630.00 £3,789.12 £30,580.88 https://www.thesalarycalculator.co.uk/salary.php Edited March 3, 2019 by Cyclone Share this post Link to post Share on other sites Share this content via...
andyofborg 11 #4 Posted March 10, 2019 On 03/03/2019 at 10:34, *_ash_* said: I remember when on wage packets, I didn't really notice the NI as it was so little. I was concentrating on the tax paid! It's sneaked up over the years , I think! That's about right. The tax calculator shows about 6k tax and 4k NI on 40k it became politically difficult for a chancellor to change the basic rate of income tax back in the 1980's, as a few parties made promises not to change it and the remaining parties were basically forced to follow suit to avoid bad headlines. parties, like the lib dems, which promised a rise also made a firm commitment that the extra raised would be ringfenced for a specific cause, like th NHS. having promised nothing about NI, sucessive chancellors have used that to fill the gaps in finance caused but not increasing the base rate of income tax also, due to the different way it's calculated a relatively small increase in NI rates raises as much as a larger rise in income tax rates would do Share this post Link to post Share on other sites Share this content via...
Cyclone 10 #5 Posted March 10, 2019 Whilst NI has been increased consistently since the 1980's, it looks like income tax has actually been reduced (at least since 1990) https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/709417/Table-a2.pdf Is it calculated differently? It has a lower limit and an upper limit, and between those a % rate. That's basically the same as a tax band. The band is lower though, so currently NI is payable on income over £162/week, or £8424a year. At 12%. Up until £892/week or £46384. And above that it's just 2%. So very much like income tax, but with a broader initial bracket and then a much lower higher rate (so it looks like a highly regressive tax structure on it's own). Share this post Link to post Share on other sites Share this content via...
andyofborg 11 #6 Posted March 10, 2019 36 minutes ago, Cyclone said: Is it calculated differently? It has a lower limit and an upper limit, and between those a % rate. That's basically the same as a tax band. income tax is calculated cumulatively over the year, ni is calculated on a per payment basis Share this post Link to post Share on other sites Share this content via...
Cyclone 10 #7 Posted March 10, 2019 Fair enough, but for the majority of people that won't alter anything will it? Share this post Link to post Share on other sites Share this content via...