Tax on wages

Andrew68

Or I can take the tax hit and from April 25' just increase by £610 a month and reap the benefits....

Andrew68

Folks,
just so I understand the tax implications of the health care benefits each month and how this is taxed. I get a total of £187.11 private health care benefits that I realise I pay tax on at 20%. 

My question is ; does this monthly amount  of £187.11 get added to my total earnings after my £12,570 and salary sacrifice is removed because i'm trying to increase my salary sacrifice to keep below £37700 to avoid paying anything at 40%  ?

InvesterJones

Andrew68 said:

Folks,
just so I understand the tax implications of the health care benefits each month and how this is taxed. I get a total of £187.11 private health care benefits that I realise I pay tax on at 20%. 

My question is ; does this monthly amount  of £187.11 get added to my total earnings after my £12,570 and salary sacrifice is removed because i'm trying to increase my salary sacrifice to keep below £37700 to avoid paying anything at 40%  ?

You'd have to speak to your company, but usually salary sacrifice is salary, not salary+benefits, so in effect yes added after salary sacrifice (%) removed.

justwhat

Your payroll dept will tell you how your pension is paid. Salary sacrifice effects NI deductions. Non of the other methods effect NIC.(if i have that wrong someone will correct me lol )

Andrew68

How much interest can I earn on our savings before being taxed ; per year if I am above the 20% threshold and how interest can I earn on our savings if I am in the 40% tax band ?

InvesterJones

Andrew68 said:

How much interest can I earn on our savings before being taxed ; per year if I am above the 20% threshold and how interest can I earn on our savings if I am in the 40% tax band ?

For savings not in any form of tax shelter, you will not have to pay tax on on the first £1000 of interest if a basic rate tax payer, or the first £500 if a higher rate.