Can someone work a simple Tax Calculation out?

seven-day-weekend

Last year my husband had a tax code of 175T and paid around £79 pcm on his income of around £9900. (Teachers Pension and Incapacity Benefit).

This year his tax code has gone up to 245T and his income will have risen by the rate of inflation. But he has lost the 10% tax bracket which Gordon took off him in the Budget.

Can any of you number crunchers work out approximately how much tax he will pay? I'm terrible at Maths!

I won't hold you to it, it's just so we know within a little how much to expect.

Thanks!

CLAPTON

there is no change to the 10% tax band until april 2008.

seven-day-weekend

CLAPTON wrote: »

there is no change to the 10% tax band until april 2008.

Brilliant! So for this year at least then, he will pay less tax.:D

Thanks:beer:

CLAPTON

when you say his income is around 9900 ... is that before tax or after

in fact it would be better if you could say

gross IB and net IB
gross pension and net pension
any other income ? e.g. interest / divident and say whether taxed or not

seven-day-weekend

Income made up as follows:

Pension before tax £7234.80 pa

IB before tax £2674 pa

Annuity before tax £592 pa (forgot this in my calculations).

around £200 pa gross interest

Nothing else.

All his income is put together and taxed from his Teachers' Pension.

Thanks.

CLAPTON

based on present income, he will be about 50 a year better off however, if his pension (and presumably the IB) increases then there will be a further increase.

if for example his pension goes up by 3% then he will be about 220 per year better off.

seven-day-weekend

Hey, well that's fine.

His pension and IB both go up every year (although the rise in IB is reduced by 50p for every £1 the pension increases), but his annuity will stay the same for evermore.

I was thinking the rise in Tax Code would be cancelled out by the loss of the 10% band, but there is another year to wait for that, as you say.

Thanks for working out the calculation for me.

CLAPTON

just bare in mind that we dont yet know the tax bands for 2008/9 yet so the loss of the 10% band may be cancelled out by raising the tax bands.