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Well our UK tax bands are marginal tax rates. So you pay zero on the first £12,570 of earnings. Basic rate of 20% from £12,571 to £50,270 of earnings. And then
by Plyphon_ 5y ago
Well our UK tax bands are marginal tax rates.
So you pay zero on the first £12,570 of earnings.
Basic rate of 20% from £12,571 to £50,270 of earnings.
And then 40% on £50,271 onwards.
(We have additional rate over £150,000 of 45%).
It's important to remember you don't pay a flat %age on your income. It's worked out as a precentage of income you earn inside the thresholds
- mprev 5y agoDon’t forget that you start to lose the personal allowance over £100k so there’s a point at which the marginal tax rate is around 60%.
- midasuni 5y agoYup. That level is at 50k if you have two kids. Even higher with three kids.
- midasuni 5y agoThat’s all irrelevant. I was quoting actual tax paid, not marginal rates. You also forget a major part of tax levied on workers but not on owners - national insurance.