The UK Tax system

skint_panther

Im not talking about benefits in this thread at all. Thank you for the assumptions.


I am currently being offered double time etc over Christmas. I am a live im a carer.

(No children, no tax benefits, no DLA, just seriously over worked and incredibly under paid.)

If i stick to my routine hours, next month i will earn £950 with around £40 reduction in tax, NI etc

If I do the additional work i would normally earn another 510. With Christmas overtime - lets round to 900. My proposed total for next month would around £1850. So my take home would be £1522.

For the amount of hours i put in, it feels like im losing out on too much of my Christmas bonus to make it worth my while.

I will only respond to conversation related to tax rates. Please don't bring in what benefits i might be on or what job i do for how many hours. I am hard working.

Thank you.

asajj

Receiving benefits doesn't mean people are NOT hardworking but that's another issue. You don't understand the tax bands I believe. You only pay tax for the amount remaining your personal allowance which is around 11k I believe. Once your earnings are over 11k, you are paying 20% for the amount exceeding this. So if you earn 15k over a year, you pay tax on 4k.

MacMickster

skint_panther wrote: »

Im not talking about benefits in this thread at all. Thank you for the assumptions.


I am currently being offered double time etc over Christmas. I am a live im a carer.

(No children, no tax benefits, no DLA, just seriously over worked and incredibly under paid.)

If i stick to my routine hours, next month i will earn £950 with around £40 reduction in tax, NI etc

If I do the additional work i would normally earn another 510. With Christmas overtime - lets round to 900. My proposed total for next month would around £1850. So my take home would be £1522.

For the amount of hours i put in, it feels like im losing out on too much of my Christmas bonus to make it worth my while.

I will only respond to conversation related to tax rates. Please don't bring in what benefits i might be on or what job i do for how many hours. I am hard working.

Thank you.

In that case I'm not sure what you consider to be the big jump. Every full time employee in the country receiving the minimum wage pays basic rate tax on their earnings over their personal tax allowance along with national insurance contributions.

Whether the overtime is worth it for you is entirely your choice.

The reason that I had assumed that tax credits were involved is that for every extra pound that a tax credit claimant earns they lose 41p from their benefits in addition to 20p tax and 12p national insurance. Some do see that as a disincentive to work more.

chrisbur

skint_panther wrote: »

Im not talking about benefits in this thread at all. Thank you for the assumptions.


I am currently being offered double time etc over Christmas. I am a live im a carer.

(No children, no tax benefits, no DLA, just seriously over worked and incredibly under paid.)

If i stick to my routine hours, next month i will earn £950 with around £40 reduction in tax, NI etc

If I do the additional work i would normally earn another 510. With Christmas overtime - lets round to 900. My proposed total for next month would around £1850. So my take home would be £1522.

For the amount of hours i put in, it feels like im losing out on too much of my Christmas bonus to make it worth my while.

I will only respond to conversation related to tax rates. Please don't bring in what benefits i might be on or what job i do for how many hours. I am hard working.

Thank you.

This is just how it works you get a tax allowance and a national insurance allowance and when your earnings go over those figures you start to pay tax at 20% and NI at 12%. As your normal earnings take you over these allowances all of your extra will be taxed/NId at 32%. Only you can decide if you feel that it is worth doing the work for 68% of your gross payment. On the plus side 68% of double time is more than you would earn for working at single time even before you start to pay tax/NI, and if the tax bands etc were spread out more say starting at 10% tax and 5% NI and then gradually going up they would have to start a lot earlier possibly even on all earnings with no allowances so you might actually be worse off.

theoretica

skint_panther wrote: »

Im not talking about benefits in this thread at all. Thank you for the assumptions.


I am currently being offered double time etc over Christmas. I am a live im a carer.

(No children, no tax benefits, no DLA, just seriously over worked and incredibly under paid.)

If i stick to my routine hours, next month i will earn £950 with around £40 reduction in tax, NI etc

If I do the additional work i would normally earn another 510. With Christmas overtime - lets round to 900. My proposed total for next month would around £1850. So my take home would be £1522.

For the amount of hours i put in, it feels like im losing out on too much of my Christmas bonus to make it worth my while.

I will only respond to conversation related to tax rates. Please don't bring in what benefits i might be on or what job i do for how many hours. I am hard working.

Thank you.

I suggest that you don't look at the before tax figures at all - it will never be your money to spend as you will, and looking at it, and then seeing you won't get it is not pleasant for anyone. So rather than 'losing' anything just look at the positive. If you do the extra work you get about £600 more in your pocket. Is that worth it to you?