Help me understand Tax

JulieGeorgiana

hughheskevi we cross posted... but believe it or not I understood most of that last post... and have calculated things quite sucessfully so far

All I need to do is understand if his new Job is the same type of pension and i'll finally get there!

You've been such a great help

ceeforcat

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So my understanding was if I earned £37,500 I would pay:

0% £0 - £7475 = £0
20% £7476 - £35,000 = £5505
40% £35,001 - £37,500 = £1000

TOTAL = £6505



This is just something I would really like to understand.



Perhaps it would be easier to understand for the op if the above was modified to:
0% £0 - £7475 = £0
20% £7476 - £37500 (max £42475)= £6005
40% £42475 and above= £0

TOTAL = £6005

JulieGeorgiana

ceeforcat wrote: »

Perhaps it would be easier to understand for the op if the above was modified to:
0% £0 - £7475 = £0
20% £7476 - £37500 (max £42475)= £6005
40% £42475 and above= £0

TOTAL = £6005

That's exactly how I figure it now. Tax was much easier to understand then NI though. But I got my head around that too

Thank you x