The Employment Thread

[Asura]

I notice that we've had a fair few threads in recent times, talking about workplace horror stories and such, but we don't appear to have a general "employment" thread.

Do we have anyone here who works in payroll, or tax? I know that in the 2014-15 tax year, the boundary between the 20% and 40% tax bands is 31,866. Does that mean a person who earns 31,865 takes home significantly more money than a person who takes home 31,867? The salary calculator website doesn't seem to suggest that.

[Neil]

Anything you earn over the threshold is taxed at 40%.

[Asura]

Anything you earn over the threshold is taxed at 40%.

Ah OK, thanks for that

[Adrock]

Also, don't forget to include the 10,000 basic tax free allowance. Meaning it's over 40k a year before you hit the 40% tax bracket

[originalbadboy]

Yeah you only pay 40% once you hit that limit,although I have no idea how they actually do it ..

I will be going way over the limit in the next 12 months or so (hopefully ) so I will find out one way or the other.

[saif]

I do not have the exact figures but the thresholds are similar. You pay income tax at 20% and NI at about 11%. When you pay 40% tax, you pay much lower NI so it is effectively 41% vs 31% (ish, not sure what the exact rates are these days).