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I'm not familiar with the UK tax system but the usual solution is to have progressive (?) tax bands. Example: On the part from 0 to 1000, no taxes 1001 to 100
by pmontra 1y ago
I'm not familiar with the UK tax system but the usual solution is to have progressive (?) tax bands. Example:
On the part from 0 to 1000, no taxes
1001 to 10000, ten percent
10001 to 20000, twenty percent
20000 to 30000, thirty percent
30001 and more, forty percent
So if you were earning 29000 and get a raise to 31000 those 29000 are still taxed as they used to and the extra 2000 are split among the two bands around 30k.
- gambiting 1y agoYes, except like many others have pointed out there are thresholds where you lose certain tax credits and benefits, so it's entirely possible to make £1 more but lose multiple thousand(for example if you're a parent and you go from making £99,999 a year to £100k a year)
- pmontra 1y agoYou are right. Those are common in my country too.