Higher tax bracket

kenzie123

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.

snowy79

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.

kenzie123

snowy79 wrote: »

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 :-)