£40k, 3 kids, 2 adults. Liveable?

Spendless

neneromanova wrote: »

I don't get Child or working tax credits now anyway, only Child Benefit. The Car tax is something to look into though. Hadn't thought of that. Thank you.

And that table on your link Spendless, I think you have to add on your tax free amount that you can get, as I read that you get taxed 40% when you reach £42 from next year.

Yes, just re-looked but also looked up how much we have to add on as salary via P11D for the cash equivalent of the car and for us it's just under £5k, so is possible you would hit 40% tax depending on value. Hubby is changing cars this year and we are going for a one that should be less expensive. There are websites you can go on to look up the different amounts.

OTE=becominganobsessivesaver;54316249]Sorry but you're not quite right with child benefit either, the tapering starts at £50k, and over £60k is where it stops. I earn around the HR threshold so is something I've been keeping an eye on.[/QUOTE]Sorry yes you are right. Under initial suggestion we would lose the lot, under the new ones we lose a % (about 1/2). I thought it was due to hubby's salary it isn't it's due to his salary plus benefits.

onlyroz

Spendless wrote: »

This isn't correct. Scroll down my link to see where 40% tax kicks in

http://www.hmrc.gov.uk/incometax/basics.htm

Also though there was a partial U-turn over Child Benefit announced this year, about what happens next year. It only stops if 1 parent is earning £50k+ but the amount you receive decreases from a lower level which I think is still set at when you become a HR tax payer. Also a company car counts as benefits in kind and will be added to the income of the OP's husband for the purpose of child benefit. This is what used to happen with child tax credits. We had to report an £11k income on top of my husband's salary for tax credit purposes (he has company car, private fuel and Bupa). These benefits alsoaffect the tax code, my husbands exceeds his personal allowance so he has a negative K code.

You're forgetting about the personal allowance. I earn £42k and am still a basic rate tax payer. And the cut off for CHB will start at £50k tapering off until you reach £60k.

Floss

neneromanova wrote: »

.... Plus I've worked out if he goes it £40k we'll have an extra £600+ a month ontop of what we currently have left over.....

....We're lucky with the job my OH has as he gets a company car and petrol paid for. Which ever car he wants, he can have (as long as he can afford the company car tax) Which takes a huuuuuge chunk out of out bills so we're really lucky....

Have you actually calculated the take home correctly, including any pension contributions? Look at http://www.thesalarycalculator.co.uk/ for an accurate figure.

And have you looked at how much company car tax your OH will actually pay? It can vary hugely from one model to another and will be deducted at source, through payroll. http://www.whatcar.com/company-car-tax/ is a good site to look at different cars to see what they would cost.