Personal Rate Of Tax

EdSwippet

38% in my final year of working. 13% since retiring three years ago.

Pepod

Estimated approx 30% at the minute. Likely be closer to 40% next year due to a payrise.

TBC15

Interestingly works out at about -2%

Johnnyboy11

Prism wrote: »

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

You'd get a good idea what the Average Joe pays in VAT from this pie chart:
https://www.economicshelp.org/blog/12272/economics/falling-uk-tax-revenue/

The_Green_Hornet

Maybe the OP should change their heading to Personal Rate of Income Tax as I would imagine the average person pays far more in indirect taxes, duties and levies than they do in income tax and national insurance.

MaxiRobriguez

I'm in the 40% tax bracket but my combined income and NI tax burden is 19%, but that is because almost 25% of my income is salary sacrificed into pension.

[Deleted User]

The_Green_Hornet wrote: »

Maybe the OP should change their heading to Personal Rate of Income Tax as I would imagine the average person pays far more in indirect taxes, duties and levies than they do in income tax and national insurance.

Sorry for not being explicit enough in my heading - I did mean INCOME TAX ONLY. I wanted a basic criteria to form a comparison basis. Ideally, NI should also be ignored as pensioners do not pay this and if included by those in employment, would distort the results

I totally agree with you. We all pay more in indirect taxes, but these are very difficult to quantify. And as for Inheritance tax....:eek:

[Deleted User]

Thank you all for your interesting replies. It clearly shows the wide disparity of income tax.

Prism

[quote=[Deleted User];76458450]Sorry for not being explicit enough in my heading - I did mean INCOME TAX ONLY. I wanted a basic criteria to form a comparison basis. Ideally, NI should also be ignored as pensioners do not pay this and if included by those in employment, would distort the results

I totally agree with you. We all pay more in indirect taxes, but these are very difficult to quantify. And as for Inheritance tax....:eek:[/QUOTE]

Its also a difficult comparison to make as some of us are full time earnings but due to working through a limited company have ways to move the tax burden about. I have for example not paid any income tax or national insurance for over 10 years but through dividends, pension contributions and holding cash within the company can pay myself anywhere from around 10k to 100k in any given year without paying much tax

TBC15

Prism wrote: »

Its also a difficult comparison to make as some of us are full time earnings but due to working through a limited company have ways to move the tax burden about. I have for example not paid any income tax or national insurance for over 10 years but through dividends, pension contributions and holding cash within the company can pay myself anywhere from around 10k to 100k in any given year without paying much tax

Would you not be better off paying class2 NI ?