Home & Garden0 min ago
What have I missed?
Lot's of sources are saying that the tax changes in the budget cancel each other out. I can't see it myself. I have a PAYE spread sheet and I plug in all the values as I see them and say a notional salary of 40k and I make it that someone on that will be about �1062 better off using standard allowances etc, what have I missed?
Here are the main figures:
Tax free allowance = 5225, higher rate threshold=34600, NI range 5200-34840, basic rate 20% upper rate 40%, ni rate 11% + 1% for the bit above the threshold.
Here are the main figures:
Tax free allowance = 5225, higher rate threshold=34600, NI range 5200-34840, basic rate 20% upper rate 40%, ni rate 11% + 1% for the bit above the threshold.
Answers
Best Answer
No best answer has yet been selected by Loosehead. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Don't know what you're doing wrong but KPMG reckon that a 40K salary should be pretty neutral
http://news.bbc.co.uk/1/hi/business/6479145.st m
http://news.bbc.co.uk/1/hi/business/6479145.st m
on �15000 you lose about �70 a year. On �28000 you gain �30 or so. On �35000 you gain �300 plus. On �40000 you lose �55. On �45000 you gain �5.90. It is indeed all over the place, but as I understand it Brown didn't claim to be reducing the tax take, just simplifying the system (something the Tories had been demanding). The system is simpler, even if working out your own profits and losses is not.
I'm only talking about the PAYE calculation I am well aware of the other factors like smoking drinking driving effect the actual figure.
jake, this site says NI upper limit is 670 per week, ie 34840, is that not correct? Where did you see the 40K figure?
http://www.moneyextra.com/advice/tax/tables/na tional_insurance.html
jake, this site says NI upper limit is 670 per week, ie 34840, is that not correct? Where did you see the 40K figure?
http://www.moneyextra.com/advice/tax/tables/na tional_insurance.html