tax help on two incomes

WaxiesDargle

Hi all

I need a bit of advice so hope someone can help. I have a pension that pays £22000 a year and pay normal tax rate on that

I have just been told that I have got a job that I applied for that pays £21000 initially and increments to £27000 after time. This is a 37.5 hour week.

They have told me that in the future, if I wanted to, I could do a job share which I am seriously considering.

Now, could anyone enlighten me on the tax implications...I know that part of my annual income will go in the higher tax bracket but not sure how it works....also is it worth me working 37.5 hours a week if I'm going to have to pay the increased tax or would it be beneficial to cut the hours down.

Thanks

CLAPTON

you can earn

per annum
6035 tax free
then 34,800 at 20% tax
then everything over 40,850 is taxed at 40%

assuming you are not over 60 and a women or 65 and a man then

this works per employment and not based on total earnings
NI :the first 453 per month is zero
then the next 2,284 is at 11%
then eveything over 3,337 is at 1%

whether you consider it 'worth it' is up to you.

fengirl_2

Assuming you are under 65, you will pay tax at 40% on about £1000 of your salary, rising to £7k (20% on the rest). On half that salary, you will pay 20% on everything.
Only you can decide whether it is worth your while to take this job.

WaxiesDargle

thanks for that...I will be taking the job, just pondering on the job share/ reduced hours issue

thanks again