New higher tax bracket

Rosiewatson

Hi

I wonder if anyone can help me, I currently earn £42300 and am due a payrise shortly. This payrise is going to put me in the 40% tax bracket. My question is am I going to be worse off by accepting this payrise? And if Sonia much would I need to be given to make it worth having?

I'd really appreciate some advice on this?

Thanks

Rosiewatson

Hi

I wonder if anyone can help me, I currently earn £42300 and am due a payrise shortly. This payrise is going to put me in the 40% tax bracket. My question is am I going to be worse off by accepting this payrise? And if So how much would I need to be given to make it worth having?

I'd really appreciate some advice on this?

Thanks

suso

Rosiewatson wrote: »

Hi

I wonder if anyone can help me, I currently earn £42300 and am due a payrise shortly. This payrise is going to put me in the 40% tax bracket. My question is am I going to be worse off by accepting this payrise? And if So how much would I need to be given to make it worth having?

I'd really appreciate some advice on this?

Thanks

difficult to say

if the only effect is that you pay tax at the higher rate on your earnings, they you will only pay tax at the higher rate of earnings above 42475

0- 7475 @ 0%
7475 - 42475 @ 20%
42475 - 150000 @ 40%

this of course depends on your tax code and any benefits in kind you receive.

If its a simple pay rise then then you will be receiving more money, so you will be better off, (you will be paying a bit more tax, but less NI.)

If your worried about tax credits etc. The rules haven't been published yet, but the general guidelines are that you will lose all tax credits once one member of the household earnings take them into the higher rate

but it is only a general guide