How much can you earn before...

Any

jackieb wrote: »

I thought (obviously wrongly) that if he was paying as he earned then he wouldn't be due anymore.

Of course you can be due more even if you "PAYE" if you weren't paying the right amount.

Which is mainly in the case of benefits in kind - the HMRC does not know you got company car (how could they??) often until the end of the year when they get P11D from the employer, so how were they supposed to notify you (or the employer) that you should pay more tax??

That is why people need to be interested in their tax affairs - if you knew to notify HMRC of a new car the tax code would get ammended and you would PAYE the correct amount during the tax year and not get caught short on the end of the year.

jackieb

He doesn't have a company car.

Last year he got a rebate and the tax was taken off before he got it paid back. We think the tax code was changed to reflect that, even though he paid the tax on that rebate in a lump sum. Hopefully he'll already have paid most of the tax due on this year's rebate due to the tax code. It's just taking so long. He's not working abroad anymore either, so less money, and very high tax at the moment. His tax code was changed in August last year so it wasn't at the end of the tax year.

I've already posted on the cutting tax board. It's all in the hands of the accountant.

Any

jackieb wrote: »

He doesn't have a company car.

Last year he got a rebate and the tax was taken off before he got it paid back. We think the tax code was changed to reflect that, even though he paid the tax on that rebate in a lump sum. Hopefully he'll already have paid most of the tax due on this year's rebate due to the tax code. It's just taking so long. He's not working abroad anymore either, so less money, and very high tax at the moment. His tax code was changed in August last year so it wasn't at the end of the tax year.

I've already posted on the cutting tax board. It's all in the hands of the accountant.

This is very complicated affair, they ususally are when foreign income is involved... If it is in hands of accountant hopefully if should get sorted soon. Fingers crossed.

BTW: never "think why it was done" but make sure you understand why it was done and know where you stand. It might come and kick you in the bum in years to come.

Sisyphean_Task

scrattox wrote: »

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.

Thanks for that.

I can see what you mean about it being a premium but given the state of pensions forecasts for the future it seems incredible to me. Shouldn't the people earning the higher salaries contribute more on the excessive part of their income? I realise they already pay more tax (except for loopholes!)

steward_2

How about adding the personal tax allowances for over 65s

Ian

Any

steward wrote: »

How about adding the personal tax allowances for over 65s

Ian

Personal allowance for people aged 65-74 £9490
For people over 75 £9640

goRt

Sisyphean_Task wrote: »

Thanks for that.

I can see what you mean about it being a premium but given the state of pensions forecasts for the future it seems incredible to me. Shouldn't the people earning the higher salaries contribute more on the excessive part of their income? I realise they already pay more tax (except for loopholes!)

What do you mean by "excessive part of their income" - I worked hard at school and have worked hard anti-social hours to et where I am (and continue to do so), why should I pay for those who haven't?
Where's the incentive for people to push themsleves? you describe a communist state.

The Beatles' summed it up years ago - "It's 1 for you 19 for me, I'm the tax man..." (tax rate refered to there being 95%)

Howard85

The median average UK pay in 2008 was £24,908. This figure relates to all standard pay, overtime, benefit in kind, etc. for full-time workers.

It's still a somewhat meaningless figure, though, as it varies widely depending on age, sex, industyr, area of country, etc. An interesting array of figures is available here:

Oh. As a new user I can't post links, sorry. Just google "median uk salary", and the top link should be to the National Statistics Online site.

Sisyphean_Task

goRt wrote: »

What do you mean by "excessive part of their income" - I worked hard at school and have worked hard anti-social hours to et where I am (and continue to do so), why should I pay for those who haven't?
Where's the incentive for people to push themsleves? you describe a communist state.

The Beatles' summed it up years ago - "It's 1 for you 19 for me, I'm the tax man..." (tax rate refered to there being 95%)

To be honest I was thinking more about city bonuses than teachers. Those people we cannot do without, that with the help of our useless government and financial regulation, have been able to steal my savings income.

Would it make you feel better if higher NI only applied to the £150k tax threshold?

megsykins

£43,875... The higher rate tax threshold, you pay 40% tax on everything earned above this (under 65s).
£43,888... You pay 11% NI up to this (1% beyond).

Those poor (use the term loosely) people earning inbetween - paying 40% and 11% NI. Wonder why this threshold isn't the same instead of £13 apart?