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What tax is actually going up in April 2022

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  • Grumpy_chap
    Grumpy_chap Posts: 18,301 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 22 January 2024 at 3:51PM
    sultan123 said:
    The July NI contribution limit seems to be increasing my net pay when I look on the calculator on this website. Is that correct?
    It should depending on your salary level - around £250 per month more can be earned without paying NI. It appears that the number crunchers are saying that anyone earning less than c£34000 per annum will pay less NI from July than they due currently in 2021/22 tax year.
    Except the OP, apparently, has £88k PAYE income plus sole-trader income exceeding £6k (which he hopes to pay to his wife as salary / tax dodge).
  • sultan123
    sultan123 Posts: 441 Forumite
    Sixth Anniversary 100 Posts Name Dropper Combo Breaker
    edited 22 January 2024 at 3:51PM
    sultan123 said:
    The July NI contribution limit seems to be increasing my net pay when I look on the calculator on this website. Is that correct?
    It should depending on your salary level - around £250 per month more can be earned without paying NI. It appears that the number crunchers are saying that anyone earning less than c£34000 per annum will pay less NI from July than they due currently in 2021/22 tax year.
    Except the OP, apparently, has £88k PAYE income plus sole-trader income exceeding £6k (which he hopes to pay to his wife as salary / tax dodge).
    I find this very offensive. Stop making things up.
  • Grumpy_chap
    Grumpy_chap Posts: 18,301 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    sultan123 said:
    sultan123 said:
    The July NI contribution limit seems to be increasing my net pay when I look on the calculator on this website. Is that correct?
    It should depending on your salary level - around £250 per month more can be earned without paying NI. It appears that the number crunchers are saying that anyone earning less than c£34000 per annum will pay less NI from July than they due currently in 2021/22 tax year.
    Except the OP, apparently, has £88k PAYE income plus sole-trader income exceeding £6k (which he hopes to pay to his wife as salary / tax dodge).
    I find this very offensive. Stop making things up.
    I apologise if I caused offence and certainly did not mean to.  

    The reference to your salary level comes from our thread in February where you were weighing up which job to accept between £80k, £87k, £88k offers:
    https://forums.moneysavingexpert.com/discussion/6334450/net-salary-difference/p1

    The reference to your sole-trader income is from this thread:
    https://forums.moneysavingexpert.com/discussion/6345549/sole-trader-paying-wife/p1

    Both of those threads are yours as the same OP @sultan123 and, indeed, you confirmed you do have both the PAYE job and the sole-trader employment:
    sultan123 said:
    Is the OP definitely sole-trader and not Ltd Co or via Umbrella Company?  
    A couple of months ago the OP was assessing the pros and cons of alternative PAYE opportunities.
    If the OP is not a sole-trader, it will make a difference to the applicable rules for employing a spouse.
    Have PAYE job but also self-employed as sole trader. Guessing this doesn't change rules for employing spouse?


    You also have a recent thread where you are comparing £70k in the north versus £90k in London as comparable:
    https://forums.moneysavingexpert.com/discussion/6347264/london-equivalent-salary/p1

    People can help you best when the data is clear and consistent.
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