How much tax?

Ex-Spendaholic

Can anyone advise me on this? I have had a year off work and am returning in September. On a salary of £17,999 can I expect to pay more or less tax than I did before the abolition of the 20p (or whatever it was) starting rate? I read somewhere that whilst it was being abolished some other rate was going down.

Any ideas?

hotblu

Hello Ex-Spendaholic,

I can give you a calculation (estimate only) on what you would have paid last year and what you will pay this year (before and after 10p tax band), just need to know have you worked at all between April 2008 to August 2008 and is the £17,999 for the year or between September 2008 to April 2009.

Hotblu

Richard019

hotblu wrote: »

Hello Ex-Spendaholic,

I can give you a calculation (estimate only) on what you would have paid last year and what you will pay this year (before and after 10p tax band), just need to know have you worked at all between April 2008 to August 2008 and is the £17,999 for the year or between September 2008 to April 2009.

Hotblu

To be really simple, wasn't the break even point around £18kpa? (changing to around £17.5k when they apply the panic driven change in September)

Subject to changes in their tax allowance:

Assuming the OP hasn't worked yet this year and the £17,999 is pa they'll be paying less than they used to pay (as deductions were based on a full year at the salary) but more tax than they would have done this year on the previous system as the lowered 22%/20% rate hasn't been applied to enough of their wages to cover the 10%/20% change.

That would leave them with their payments going up next year due to working the whole year, but at around the same level as they used to pay? (Subject to further changes)

jem16

Ex-Spendaholic wrote: »

Can anyone advise me on this? I have had a year off work and am returning in September. On a salary of £17,999 can I expect to pay more or less tax than I did before the abolition of the 20p (or whatever it was) starting rate? I read somewhere that whilst it was being abolished some other rate was going down.

Any ideas?

The 22% rate became 20% and NI payments changed too. This made £15k as the rough figure where the changes mattered.

According to this site £17,999 would see you better off - I am not taking into account the fact that you have not worked for part of this tax year.

http://www.listentotaxman.com/index.php?c=1&yr=2008&age=0&add=0&code=&pension=0&time=1&ingr=17999&vw%5B%5D=yr&vw%5B%5D=mth&vw%5B%5D=wk

Ex-Spendaholic

Thanks for your help everyone. I'm sorry I should have been more specific from the outset. I have been on a mixture of annual leave and maternity leave from September 2007. I was on full pay from until March 2008. From April 2008 to end of July 2008 I have been on SMP only (£117.25 per week or thereabouts) and for the month of August I am officially on annual leave so will be on full pay in August and every month after.

So actually my April 2008 - March 2009 salary won't be the £17,999 as I have had SMP for 4 months it will be somewhere in the region of £16,500.

I'm just wondering what I can expect in my pay packet really. I know that £18K was mentioned as the magic figure when these changes came in and I remember thinking it was typical that I was £1 off it.

Any help appreciated.

jem16

Ex-Spendaholic wrote: »

I'm just wondering what I can expect in my pay packet really. I know that £18K was mentioned as the magic figure when these changes came in and I remember thinking it was typical that I was £1 off it.

Any help appreciated.

If you click on the link I gave you, you can enter your exact wage and see what you would get in your pay packet.

Ex-Spendaholic

Thank you Jem. I have just used that link. Its a fantastic tool and I'm now using it to check all sorts of things like the impact on my salary if I reduce my hours from 22 down to 19 and if I go term time.

Thanks again. :beer: