How much can you earn before...

Former_MSE_Wendy

Where are you on the salary tree?

On Tues, the Tories said they won't abolish the 50% tax rate for anyone earning over £150,000/year, if they get into power. Most of us aren't lucky enough to earn this, but for everyone salary is one of life’s key numbers. We've complied a list of the critical salary markers to help you speedily see what tax you'll pay, what you’re entitled to and more...

(note there can be minor varience for individuals – see the Income Tax Checker)

£4,940... you start to earn National Insurance (NI) credits
£5,720... you need to start paying NI contributions
£6,475... under 65s personal allowance (ie earnable before income tax-free)
£12,064... a year's minimum wage at 40 hours a week (over 22s)
£15,000... above this you must repay post-98 Student Loans
£16,040... max. family earnings for free school meals, bigger Child Trust Fund, and full Child Tax Credit
£19,760... the cap on salary for statutory Redundancy Pay
£25,800 approx... AVERAGE UK SALARY
£25,936... above this you must repay pre-98 Student Loans
£32,300... the max family income when kids aged 16-19 can get £30/week Educational Maintenance Allowance
£40,000... family income under this and you could be eligible for a decent Childcare Tax Credit payout
£43,875... the amount you start to pay higher 40% tax (under 65s)
£43,888... the amount you pay 11% NI up to (1% beyond that)
£58,000... the max family earnings to still be eligible for benefits (kids aged over 1)
£60,000... the max family earnings you can still get help from the govt Mortgage Rescue Scheme
£66,350... the max family earnings to still be eligible for benefits (kids aged under 1)
£150,000... from April 2010 the amount you’ll pay 50% tax at

Please feel free to suggest more below.

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bexmark_2

How about
£18,000 - the level of public sector pay above which pay may be frozen under a Conservative administration, (sorry, bit political...)

sherry_d

I was seriously thinking of voting conservatives but not so sure now...esp the talk about cutting tax credit for households earning over £30 000. With kids and nurseries £30 000 aint much and for them to not want to tax 50% on people earning over £150 000 and opt for civil servants earning £18 000 really shows who this party support. The feelings I had for Cameroon have slowly melted away...especially today

webwiz

It would be useful to show the level at which the over 65 personal allowance starts to be clawed back and then the level where it has all gone.

webwiz

Is this thread about tax or a place to make cheap party political points?

scrattox

Does the "AVERAGE" UK Salary refer to a median or a mean?

goRt

£100,000 the point where tax allowances start to reduce to 0 (effective tax rate 60% on income to £110,000)

goRt

£150,000 the point where tax releif on pension contributions starts to reduce from 40% to 20%

Sisyphean_Task

£44,888... the amount you pay 11% NI up to (1% beyond that)

What?

If you earn £44,889 you drop 10% from 11% to 1% or should it be 12% beyond that?

scrattox

Sisyphean_Task wrote: »

£44,888... the amount you pay 11% NI up to (1% beyond that)

What?

If you earn £44,889 you drop 10% from 11% to 1% or should it be 12% beyond that?

You drop 10 percentage points from 11% to 1%, but only on what you earn over 44,888, not on your total earnings.
So you pay 11% on anything up to 44,888 and 1% on anything over 44,889.

Presumably this is because national insurance is not strictly a tax - it is a premium for state pensions etc., and therefore is not used progressively.

rmanpaul

I just can't wait to be average just like a lot of people