Two income household: 2xTax + 2xNI

2

Replies

  • Londonsu wrote: »
    What did you get in the country of your birth? Did you get a rebate on tax and your equivalent of NI where you came from?

    Lots of countries tax on the basis of household income - it isn't a particularly unusual thing to do.
  • dippy3103dippy3103 Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    Yes you do get a credit for being a dual income household. You get two lots of wages. Many people would give their right arm to be in your position.
  • JusinScotJusinScot Forumite
    36 Posts
    Sixth Anniversary 10 Posts Name Dropper
    Forumite
    Yes I know we are blessed to be in this position. But we also put in the effort, 10-12 hour work days, weekends, no social life to speak of.

    I ask these questions because we get benefits regardless of the number of people that work in the household. So its odd to me that when the second person starts working, they pay the full NI for no extra benifit.

    Thanks for the info.
  • JusinScot wrote: »
    Yes I know we are blessed to be in this position. But we also put in the effort, 10-12 hour work days, weekends, no social life to speak of.

    I ask these questions because we get benefits regardless of the number of people that work in the household. So its odd to me that when the second person starts working, they pay the full NI for no extra benifit.

    Thanks for the info.

    Well technically everyone gets the NHS (with a few exceptions) so even people who don't work get access to the NHS.

    Paying NI just helps in part to fund it. As you are on a good salary, you get to help fund the NHS, along with every other tax payer in the UK.

    I'm not sure what other benefits you are speaking of.
  • I think you'll find that the extra benefit they receive is the extra money you have at your disposal.

    I don't know whether I mis-read your post but, are you saying that you earn all that money and get benefits as well?
  • JusinScotJusinScot Forumite
    36 Posts
    Sixth Anniversary 10 Posts Name Dropper
    Forumite
    I know we don't qualify for most benefits.

    My question is: if one person works we pay £x and get n number of benifits. If two people work, we pay £x+£y, do we get n+m benefits? Like a higher pension?
  • xylophonexylophone Forumite
    41.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Forumite
    Like a higher pension?

    You are each building a state pension.

    https://www.gov.uk/new-state-pension/overview

    Your employers provide a pension scheme? You are members? Then you are building a private pension.
  • thriftylassthriftylass Forumite
    3.9K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Forumite
    JusinScot wrote: »
    I know we don't qualify for most benefits.

    My question is: if one person works we pay £x and get n number of benifits. If two people work, we pay £x+£y, do we get n+m benefits? Like a higher pension?

    You don't qualify for MOST benefits? I thought at your salary you shouldn't get any. Unless there is sth lost in translation here. Do you count a pension, after you finished your work life, a benefit. Whereas we think of benefits in terms of housing benefit, unemployment benefit.

    If two people work you won't get a higher pension (unless again you think in terms of household rather than individuals) but both of you will get a pension instead of just one of you, based on your NI contribution years
    DEBT 03/23: CC 4637 4318 4100 Family 1380 0 , Extra money earnt £54, NSDs 1/20, sober 2/31
  • edited 30 May 2016 at 12:36PM
    p00hsticksp00hsticks Forumite
    11.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    edited 30 May 2016 at 12:36PM
    JusinScot wrote: »
    My question is: if one person works we pay £x and get n number of benifits. If two people work, we pay £x+£y, do we get n+m benefits? Like a higher pension?

    Yes - with regard to NI, if both of you lost your jobs, you would each be entitled to six months contributions based JSA (or ESA if you were sick) and you are both building up entitlement to individual state pensions.

    In terms of income tax, you both get an individual tax allowance (this year of £11,000) and it is only above this amount that tax is deducted- so as a couple earning £x and £y you pay less tax than you would if you were an individual (or part of a couple with your partner not working) earning £x+£y
  • dippy3103dippy3103 Forumite
    2K Posts
    Part of the Furniture 1,000 Posts Combo Breaker I've been Money Tipped!
    You will find that there are lots of people in two income households. I don't know which country you come from so I don't know what the system is there?

    I assume as tax payers you use the NHS, roads and have access to the raft of public services which we all have access to.
This discussion has been closed.
Latest MSE News and Guides

Did you know there's an MSE app?

It's free & available on iOS & Android

MSE App

Regifting: good idea or not?

Add your two cents to the discussion

MSE Forum

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools