Re:Moving to London for a Tech Job
by Silhouette on Friday May 14, 2021 @12:32PM
(#27156173)
But then you have to factor in National Insurance contributions, which also have a (different) threshold below which they don't cost anything, then cost you 12% up to around the £50K mark, then cost you 2% over that.
And even that isn't quite the whole story, because you'll also lose certain child-related benefits starting from £50K if you have kids, so your effective rate for the next £10K or so can work out much higher than 40%.
Then there are the effects of not-unusual things like pension contributions and charitable donations, which can move things around a bit more.
It's hardly a surprise that people find the system confusing!
And even that isn't quite the whole story, because you'll also lose certain child-related benefits starting from £50K if you have kids, so your effective rate for the next £10K or so can work out much higher than 40%.
Then there are the effects of not-unusual things like pension contributions and charitable donations, which can move things around a bit more.
It's hardly a surprise that people find the system confusing!