Re:UK Treasury trying to find a Head of Cyber Security for £55k
by jstx1 on Sunday April 02, 2023 @06:41AM
(#35409147)
Your numbers are way off. From next week it's:
Basic rate of 20% on earnings between £12,571 and £50,270.
Higher Rate of 40% on earnings between £50,271 and £125,139.
Additional Rate of 45% on earnings from £125,140.
You also gradually lose your tax-free allowance if you make over £100k so there's a weird dead zone in which your marginal rate is something like 60%.Then there's NI which is effectively tax too but isn't listed in the bands above. Someone on £150k is paying 40% tax and NI (total, not marginal). Not quite half but it's now low either.
Re:UK Treasury trying to find a Head of Cyber Security for £55k
by LandR on Sunday April 02, 2023 @07:52AM
(#35409593)
Are for those of us in Scotland, that 40% is 41% :/
Re:UK Treasury trying to find a Head of Cyber Security for £55k
by teh_klev on Sunday April 02, 2023 @10:20PM
(#35417781)
Yes and kicks in at just over 43k :(
Re:UK Treasury trying to find a Head of Cyber Security for £55k
by Jochim on Sunday April 02, 2023 @08:38AM
(#35409914)
The problem is most people simply aren't rich enough. The effective tax rate of our current, and richest, prime minister was only 22%. I'm on the low end of the higher rate bracket and already pay more than that, before counting NI/loans.
Re:UK Treasury trying to find a Head of Cyber Security for £55k
by teh_klev on Sunday April 02, 2023 @10:19PM
(#35417777)
That's for England and Wales. In Scotland it's different:
Personal Allowance Up to £12,570 0%
Starter rate £12,571 to £14,732 19%
Basic rate £14,733 to £25,688 20%
Intermediate rate £25,689 to £43,662 21%
Higher rate £43,663 to £150,000 41%
Top rate over £150,000 46%
Re:UK Treasury trying to find a Head of Cyber Security for £55k
by vidarh on Sunday April 02, 2023 @06:12AM
(#35408997)
Including NI it's more like 32% and 42%, and the 40% + 2% NI kicks in lower than that. But, yeah, the effective rate is far lower.
You hit 33% income tax + NI at 100k (see listentotaxman.com)
As for the tax, we have progressive taxation in the UK. Earning £100k, you'd pay 0% on the first 12.5k, 25% on the next 70k or so, and 45% on the last 27.5k (numbers are from memory so they might be a little off). High wage earners are not giving up half their income in tax. That'd be silly.