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I'm not counting my voluntary repayments in that figure. 45% Income Tax + 9% Student Loan Repayment (mandatory) + 3.25% National Insurance Contributions Gives
by intunderflow 4y ago
I'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.