How do I know if/when I am in the 40% tax bracket?

Flugelhorn

SacredStephan said:

Flugelhorn said

similarly with the NHS pension there are some cliff edged for example hit £62925 and you pay an extra 1.8% on the whole of your pensionable pay = approx £1100  (compared with a pensionable pay of £1 less)

The cliff edges in Scotland are less severe:
https://mypaycalculator.co.uk/nhs#pension

definitely more gradual 

penners324

Jami74 said:

Bookworm105 said:

when will people ever appreciate that tax is not 100%
even the most obvious threshold of losing personal allowance means you still keep 40% of what you earn.

I often wonder if the more you earn the greedier you become.

Are you referring to me as 'people'. As referred to above, there are cliff edges with both NHS pension and tax brackets which, when combined with student loan, I was concerned could potentially result in the deductions being greater than the extra money earned. I have no qualms paying 40% tax, in fact it's a very exciting milestone for me having entered adulthood with no qualifications, in a minimum wage job and on benefits now being in a position to be paying higher rate tax and contributing to a pension. However, time at home with my family has a value too and if breaching certain cliff edges means getting little financial reward for the extra hours worked, then I'd rather go without the extra financial reward. 

Surely the bump in pension payments on the NHS is good financially in the long term?

Flugelhorn

penners324 said:

Jami74 said:

Bookworm105 said:

when will people ever appreciate that tax is not 100%
even the most obvious threshold of losing personal allowance means you still keep 40% of what you earn.

I often wonder if the more you earn the greedier you become.

Are you referring to me as 'people'. As referred to above, there are cliff edges with both NHS pension and tax brackets which, when combined with student loan, I was concerned could potentially result in the deductions being greater than the extra money earned. I have no qualms paying 40% tax, in fact it's a very exciting milestone for me having entered adulthood with no qualifications, in a minimum wage job and on benefits now being in a position to be paying higher rate tax and contributing to a pension. However, time at home with my family has a value too and if breaching certain cliff edges means getting little financial reward for the extra hours worked, then I'd rather go without the extra financial reward. 

Surely the bump in pension payments on the NHS is good financially in the long term?

only if you earn further into the band - you won't get much more pension for paying an extra say 1.8% on all your income as the pension is based on pensionable pay not the contributions, so £1 over the threshold will give vvv smal pension increase compared with an extra 1.8% being deducted from pay 

SacredStephan

penners324 said:

Surely the bump in pension payments on the NHS is good financially in the long term?

My wife works in the NHS. Many of her colleagues in their 20s and 30s have opted out of the pension because they can't afford it.