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Higher tax bracket

kenzie123
Posts: 89 Forumite


Hello
I need some advice regarding pay.
I earned £41,662 in a previous role. I applied for a new role in my current department and got the position and they have offered me £41,707. I want to go back to them and ask for more as I feel it is too low a raise considering my experience.
They may say no.
However if they say yes, I am concerned that I will make just enough to get myself into the higher tax bracket making it less worth it.
As I'm on the cusp here I wondered what would be better - earning slightly less and staying in the lower bracket, or meeting the threshold to pay it.
Any thoughts appreciated.
I need some advice regarding pay.
I earned £41,662 in a previous role. I applied for a new role in my current department and got the position and they have offered me £41,707. I want to go back to them and ask for more as I feel it is too low a raise considering my experience.
They may say no.
However if they say yes, I am concerned that I will make just enough to get myself into the higher tax bracket making it less worth it.
As I'm on the cusp here I wondered what would be better - earning slightly less and staying in the lower bracket, or meeting the threshold to pay it.
Any thoughts appreciated.
0
Comments
-
Don't worry, the higher tax bracket will only apply to anything that is earned over the threshold so you won't end up with a pay cut.
You will pay the basic amount on anything you earn up to the threshold (which I think is about £45k).
You will then pay the higher rate of 40% on anything you earn over £45k.
If you are going for a really BIG pay rise I think you pay 50% on anything over £150k!!
I agree that is a pretty poor pay rise for a promotion, hope you get it sorted.0 -
Don't worry, the higher tax bracket will only apply to anything that is earned over the threshold so you won't end up with a pay cut.
You will pay the basic amount on anything you earn up to the threshold (which I think is about £45k).
You will then pay the higher rate of 40% on anything you earn over £45k.
If you are going for a really BIG pay rise I think you pay 50% on anything over £150k!!
I agree that is a pretty poor pay rise for a promotion, hope you get it sorted.
Thanks so much thats good to know :-)0
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