Income Tax (UK)

London Geezer

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Hey guys,

Does anyone here know anything about this?

Basically, i just do not understand it.

From the Inland Revenue website, it says that if you earn up to £33300, you get taxed at 22%, and anything more than £33301, you get taxed at 40%.

Now, what does that really mean? If i'm on £33300, i would take home, after tax, around £2100 a month. Does that mean that if i jump of even just £1 and get £33301, i get taxed 40%, taking home around £1660? That would mean that i would actually earn less than when i was on £33300 until i'm on £42000?? That can't be right...

*confused*
 
Don't panic. You only get taxed 40% on the delta over the 33300. In your example, if your pay increased from 33300 to 33301 you would only pay an additional 40 pence tax.
 
Hey guys,

Does anyone here know anything about this?

Basically, i just do not understand it.

From the Inland Revenue website, it says that if you earn up to £33300, you get taxed at 22%, and anything more than £33301, you get taxed at 40%.

Now, what does that really mean? If i'm on £33300, i would take home, after tax, around £2100 a month. Does that mean that if i jump of even just £1 and get £33301, i get taxed 40%, taking home around £1660? That would mean that i would actually earn less than when i was on £33300 until i'm on £42000?? That can't be right...

*confused*
you actually should have 3 tax bands: 10%, 22%, and 40%. Each band only applies for the a specific range. At least thats what i got from a cursory search.

epic
 
Don't panic. You only get taxed 40% on the delta over the 33300. In your example, if your pay increased from 33300 to 33301 you would only pay an additional 40 pence tax.

Oh good lord THANK YOU!

I was already mentally preparing my argument to my future boss about how "i would much prefer to be on 33,300 than 40,000!!"... Thinking that for some reason, i'd actually get less when on 40k than on 33k...
 
wow you guys are taxed so low. i'm jealuss..

i receive 59% of my brut income :cry: . at least i have a company car and tank card
 
i'd be glad to have a tax code that isn't re-written every 3 years

and the beatles probably had some sort of tax shelter system to make a bit more than 5%, but still, =o
 
wow you guys are taxed so low. i'm jealuss..

i receive 59% of my brut income :cry: . at least i have a company car and tank card

Well that's just income tax of course. On top of that we have National Insurance and other things, so we do get taxed more than the 22% or the 40% i mentioned.
Plus in the UK we pay 17.5% VAT on pretty much everything we buy...

So in the end, i don't think we're that different :D
 
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