8 ms·
Are you sure your tax rate is 55%? You’d have to be earning £500k+ and paying off a Plan 4 student loan for that to be the case.
by villaaston1 4y ago
Are you sure your tax rate is 55%? You’d have to be earning £500k+ and paying off a Plan 4 student loan for that to be the case.
- intunderflow 4y agoPart higher, part additional rate + 9% student loan repayment + national insurance contributions I'm nuking the student loan as fast as possible, especially with the interest rates being near extortion, so hopefully that will mean I get more take home in the future
- mrcartmeneses 4y agoAh so you’re choosing to repay a loan faster and calling that tax. Be honest please
- intunderflow 4y agoI'm not counting my voluntary repayments in that figure. 45% Income Tax + 9% Student Loan Repayment (mandatory) + 3.25% National Insurance Contributions Gives 57.25%, but this is off because: - Student loan repayments start somewhere above 20k, which decreases it - National insurance runs at 10.25% before going down above a certain income, which increases it - Higher rate and basic rate apply to some income (but no tax free allowance), which decreases it Hence to a round(ish) number roughly 55%
- new299 4y agoHonestly I think these kinds of calculations should also include all the VAT you pay out over the course of a year, which I imagine is also reasonably substantial. Also, you're not paying 45% income tax on the total amount right (that's the highest bracket in the UK).
- martingoodson 4y agoThis is highly misleading. The 45% rate only applies to the portion of salary over £150k. Someone earning £200k will pay 75k in income tax. That’s 37.5% overall.
- blitzar 4y agoImpressive you can earn >200k and yet be unable to do basic maths.
- deleted 4y ago[deleted]
- Scoundreller 4y agoYou haven’t included VAT in your effective tax rate.