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40% Higher Rate Income Tax for earning £35k


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Yes you will although not as much as him. Buying in at £10 (£12 - vat) and selling at £11.67 + VAT is £14 on the ticket price. That's still a profit of £1.67 as opposed to the smaller guys admitted profit of £2.

 

My mistake :)

 

I think vinyl shows it better when you start taking labour costs into account

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auto98uk, Alex C & truman - I thank you for the education and stand corrected. I've applied for a few jobs around the £40k mark lately so that is a bit of a relief!

 

Last time we listen to any of your posts about the state of the economy :loopy:

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That 50% tax isn't any higher than the 40% tax.

 

Because NI falls from 11>1 (soon to be 12>2)

 

Either way 52% effective tax rate.

 

Yes it is. The upper earnings limit for NI is about £820 a week, so about £43,000 after that limit you pay NI at only 1%

 

Your marginal tax rates are roughly for a person claiming full tax free allowance.

 

First £6475 is tax free

 

About 33% up to 43k a year. (22% income tax and 11% NI)

 

 

From £43k onwards 41% (40% income tax and 1% NI) up to 100k

 

At 100k, the tax free allowance is withdrawn at a rate of £1 for every £2 earned, so from £100k to £113k you face a tax rate of 61% made of the 40% rate and withdrawal of allowances

 

From there to £150k it's back to 41%

 

From there upwards it's 51%. However there are also penalties for those stuffing more than 20k a year into a pension that means they lose tax relief on that and get double taxed on your pension so the effective rate is even higher than that.

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