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Is your brother in Scotland? If not he should get his tax code checked. Combining income tax and national insurance contributions, the highest marginal tax rat
by noneeeed 3y ago
Is your brother in Scotland? If not he should get his tax code checked.
Combining income tax and national insurance contributions, the highest marginal tax rate on your salary is 47%, and that is only on everything over £125k (about $150k).
The vast majority of people are in the standard rate band where you pay 20% IT and 12% NI contributions, a total of 32% on what you earn over the tax free allowance £12,500 and under the £50k higher rate threshold, at which point it switches to 40% IT and just 2% NI.
If you earn £50k you will pay 23% total tax on your salary.
If you earn £125k you pay about 38% total tax on your salary.
The very highest marginal rate he should pay is 47%, if he is paying more then someone screwed up.
In Scotland they have slightly higher rates.