Job offer - do I take it? I have tax concerns...

[brookeb]

Hello! I've got a quick question about tax... I've been offered a job within my current company however I have a few concerns about the wage being offered... I currently earn about ?42k net, but this new job puts that at ?48k net (similar position to what I do now with a few added responsibilities. I was wondering what happens to my income when it goes into the higher tax band? Is all of it taxed at 40%? I've checked out this tax calculator but it only tells me what I will make, not which bands of tax I am paying, so I was hoping someone here can help?

Many thanks :)

[DulwichFox]

I am certainly no expert on Tax matters but I have been in the same situation back in 2000.

I believe you will only be Taxed at the 40% rate for the part of your income above the threshold.

DulwichFox

[DulwichFox]

PAYE tax rates and thresholds

2018 to 2019

Employee personal allowance

?228 per week

?988 per month

?11,850 per year

UK basic tax rate

20% on annual earnings above the PAYE tax threshold and up to ?34,500

UK higher tax rate

40% on annual earnings from ?34,501 to ?150,000

UK additional tax rate

45% on annual earnings above ?150,000

Different rates apply for Scotland,

More info..

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019

DulwichFox

[d.b]

It's a no-brainer - if you take the new job with a higher salary, your net salary will also go up.

The higher 40% rate of tax is only applied on the amount above the threshold.

[JohnL]

brookeb Wrote:

-------------------------------------------------------

> Hello! I've got a quick question about tax... I've

> been offered a job within my current company

> however I have a few concerns about the wage being

> offered... I currently earn about ?42k net, but

> this new job puts that at ?48k net (similar

> position to what I do now with a few added

> responsibilities. I was wondering what happens to

> my income when it goes into the higher tax band?

> Is all of it taxed at 40%? I've checked out this

> tax calculator but it only tells me what I will

> make, not which bands of tax I am paying, so I was

> hoping someone here can help?

>

> Many thanks :)

You'll never lose through an increase that way - also a reduction in NI at some level around there

Between Primary Threshold and Upper Earnings Limit

12%

Above Upper Earnings Limit

2%

Upper Earnings Limit (UEL)

All employees pay a lower rate of National Insurance above this point ?3,863 per month

[rendelharris]

Think you're being spammed guys, the likelihood that someone intelligent enough to be on ?48k couldn't work this out for themselves, or wouldn't ask someone at work about it, is zero. The fact that they only joined the forum to ask this question is a bit of a giveaway too. It's just trying to make you go to the linked page.

ETA reported

[RicB]

LOL, no one spotted that they mention ?42K NET to ?48K NET... By definition, net means AFTER tax, so clearly they would be ?6K better off after tax, so they wouldn't have to ask the question in the first place!

Agree with RendelHarris about it being a spam...or possibly an experiment...

But to answer the OP's question, No don't take it ;)

[robbin]

Quite - as if the OP wouldn't know how the tax thresholds work (i.e. that you only get charged tax on the amount you earn over the relevant threshold)!