Another New Job and Tax Query

anotheruser

Hello

If I was to be employed with a salary of £50,270, I would pay the lower tax limit but if the salary was £50,271, then I would pay the higher tax rate, correct?
So if the salary was £51,000, it would be worse than being paid the £50,270 as I'd be paying a lot more in tax, is that correct?

JGB1955

anotheruser said:

So if the salary was £51,000, it would be worse than being paid the £50,270 as I'd be paying a lot more in tax, is that correct?

No.  You only pay the 40% on every £ ABOVE £50,270.
o% on the first £12,570
20% on the next £37,700 and
40% on the remaining £730.

Dazed_and_C0nfused

anotheruser said:

Hello

If I was to be employed with a salary of £50,270, I would pay the lower tax limit but if the salary was £50,271, then I would pay the higher tax rate, correct?
So if the salary was £51,000, it would be worse than being paid the £50,270 as I'd be paying a lot more in tax, is that correct?

There could be a situation involving Marriage Allowance where earning that extra £1 could cost you £250+ in extra tax but for most people it would as per previous post, you only pay 40% tax above your basic rate band.

anotheruser

Thank you both - top rated answers!

Savvy_Sue

You could also possibly salary sacrifice into a pension to reduce your tax liability - and increase your pension pot!

Thrugelmir

Savvy_Sue said:

You could also possibly salary sacrifice into a pension to reduce your tax liability - and increase your pension pot!

The role one would presume has an employers pension scheme by default anyway. 

Savvy_Sue

Thrugelmir said:

Savvy_Sue said:

You could also possibly salary sacrifice into a pension to reduce your tax liability - and increase your pension pot!

The role one would presume has an employers pension scheme by default anyway. 

Indeed, but putting more into pension can be very tax efficient