Personal Rate Of Tax

[Deleted User]

It's Sunday afternoon, so I thought I'll start a survey for a bit of fun!!

Just wondering about your personal rate of tax - by that I mean taking the whole of your gross income, (salary, pension, savings interest etc) and expressing that as a percentage to the amount of tax paid during the year. As a basic rate tax payer, mine comes out at 7.4%.

I'm somewhat intrigued to see how that compares with other people's tax contribution.

yes_and_no

Does this include NI contributions?

For the last few years, I've been paying about 2% tax, on a taxable income of 20-something thousand. This is low because it's all interest and dividends. If I had the same income from employment or self-employment, it would be more like 16% or 20% (including NI).

It makes no sense (even though it happens to favour me ).

Davy_Jones_II

46%........

ColdIron

I take a shade under the £12,500 personal allowance from my pension, make full use of the starting rate for savings, personal saving allowance and about 3/4 of the CGT exemption amount as I Bed & ISA each year so no tax there. ISA income is obviously tax free. Since Hammond reduced the dividend allowance my self assessment shows I owe HMRC about £250 for dividends from an unwrapped account but I continue to make pension contributions so receive £720 tax relief. As a percentage the number is pretty meaningless so I won't bother

After 40 odd years of work and paying tax I now find myself a net beneficiary of the tax system. It's a funny old game

Prism

Its a complicated question. On the face of it only pay 4.7%, all of which is dividend tax. I pay no income tax or national insurance. However I have not included last years corporation tax which paid for this years dividends nor company pension contributions. Also most employees would likely not include the employer class 1 NI payments which for most people is a hidden tax.

hugheskevi

Covering income tax and National Insurance, the figures for my household (wife and I) for the last few years are

2013/14: 16%
2014/15: 15%
2015/16: 17%
2016/17: 23%
2017/18: 23%
2018/19: 24%

The increase in 2016/17 was due to ceasing to put all income subject to higher rate tax into a pension (due to having built up sufficient pension).

The above ignores accumulated assets held in a company and which will in the future be extracted via dividends.

Alice_Holt

(14.9%) income tax only

Looking at a net position - i.e the difference between HMG paying me a State Pension and income tax I pay to HMRC:
a 2.9% addition to my annual income.

talexuser

Estimate for this tax year 12.8%, full basic rate on final salary inflation linked pension and state pension, plus max basic rate dividend tax and some higher rate dividend tax. No income from SIPP yet.

capital0ne

[quote=[Deleted User];discussion/6066016]It's Sunday afternoon, so I thought I'll start a survey for a bit of fun!!

Just wondering about your personal rate of tax - by that I mean taking the whole of your gross income, (salary, pension, savings interest etc) and expressing that as a percentage to the amount of tax paid during the year. As a basic rate tax payer, mine comes out at 7.4%.

I'm somewhat intrigued to see how that compares with other people's tax contribution.[/QUOTE]
What about VAT?

Prism

capital0ne wrote: »

What about VAT?

Almost impossible (and pointless) to work out for an individual.

TadleyBaggie

8.6%. Pension income only, so NI not applicable.