And I talk about taxes. WTF.
Mar. 3rd, 2008 11:07 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
pezI'm looking at flight prices, to fly in about 2-3 weeks. Over Easter holiday. orz Oh, life. If only my dad spoke sooner, I could've taken advantage of all those lovely BA.com bargains. And not spent all the money I've made selling stuff on other stuff. Randomly forking out £400 (because I'm paying for the HKG trip and he's paying for Tokyo) is not very good if one wants to move house at some point this year. But holiday with family = not been done for a long long time...
This morning I've been checking on my tax code etc to make sure I'm not paying too much. Unfortunately I'm paying the right amount.
Randomly, though, looking at tax bands... without getting into all the tax allowance stuff (and also NI since that's the same percentage for almost everyone), for earnings between 2231 - 34600, basic income tax is 22%. Assuming you earn 34600, after 22% is £26988.
But if you earn above 34600, income tax rate is 40%. So, if you earn say, 35000 pa, after 40%, you get £21000 only...?
Doesn't that mean that, to make sure you don't "lose out", you'll have to earn a salary, X, where 0.6X > 26988, therefore X = £44980. Anybody earning between 34600 and 44980 pa would effectively be making less money than someone earning just below £34600.
Er...... that can't be right... can it?
I was assuming employers would know that anyway and would try to not put you in that salary boundary, but. It's some £10000 difference. No employer would do that for you. No one is going to get a salary rise from 34500 to 45000 just to help you with taxes.
..........I must be missing something here.
[edit] OH. Right. It doesn't work like that. Neermind. XDDDD
This morning I've been checking on my tax code etc to make sure I'm not paying too much. Unfortunately I'm paying the right amount.
Randomly, though, looking at tax bands... without getting into all the tax allowance stuff (and also NI since that's the same percentage for almost everyone), for earnings between 2231 - 34600, basic income tax is 22%. Assuming you earn 34600, after 22% is £26988.
But if you earn above 34600, income tax rate is 40%. So, if you earn say, 35000 pa, after 40%, you get £21000 only...?
Doesn't that mean that, to make sure you don't "lose out", you'll have to earn a salary, X, where 0.6X > 26988, therefore X = £44980. Anybody earning between 34600 and 44980 pa would effectively be making less money than someone earning just below £34600.
Er...... that can't be right... can it?
I was assuming employers would know that anyway and would try to not put you in that salary boundary, but. It's some £10000 difference. No employer would do that for you. No one is going to get a salary rise from 34500 to 45000 just to help you with taxes.
..........I must be missing something here.
[edit] OH. Right. It doesn't work like that. Neermind. XDDDD
