Tax thresholds change from April 2019

RandallFlagg

 For anyone not aware (I wasn't) the tax thresholds change in April.

The threshold at which you start paying 20% is raising to £12,500 so that's £10.83 a month extra you'll get in your pay packet and for anyone earning over the 40% tax threshold, that is increasing to £50,000 so you will only pay 20% tax on £3650 instead of 40% so that's another £60.83 you'll see in your pay packet each month.

So big earners could be £71 a month better off.

This doesn't apply to socialists or labour voters though, theirs gets distributed among the Tory voting faithful.

RaymondLin

£71 is not enough for a bottle of Dom Perignon, pittance  

RandallFlagg

RaymondLin said:

£71 is not enough for a bottle of Dom Perignon, pittance  

Pomagne it is then

not_the_dj

Didn't realise that, good news!

thomasross20

40% band a lot lower in Scotland!
More like £43k. 

RandallFlagg

thomasross20 said:

40% band a lot lower in Scotland!
More like £43k. 

Someone's got to pay for those free university places.

WiresDreamDisasters

No benefits for anyone earning between £12,500 and £50,000 then?

Wazmeister

RandallFlagg said:

RaymondLin said:

£71 is not enough for a bottle of Dom Perignon, pittance  

Pomagne it is then

Or, R Whites Lemonade...

RandallFlagg

WiresDreamDisasters said:

No benefits for anyone earning between £12,500 and £50,000 then?

Yes. £10.83 and 20% less tax on anything you earn over £46,350 up to £50,000. If you earn less than £46,350 then it's just £10.83 a month extra net pay.

WiresDreamDisasters

Ahhhh I see. Groovy. Extra bottle of Shipyard a week.

RandallFlagg

Wazmeister said:

RandallFlagg said:

RaymondLin said:

£71 is not enough for a bottle of Dom Perignon, pittance  

Pomagne it is then

Or, R Whites Lemonade...

You can get 8  x 2 litre bottles of R Whites a week with your tax savings Waz, you'll be burping and farting like a good 'un!

Majorscale

Not sure where you sourced your figures from @RandallFlagg, but it’s not quite as bad for the basic rate tax payers, nor quite as good for the higher rate earners due to the combined effect of income tax and national insurance threshold changes. Here's a good breakdown of the gains depending on your income band...

https://www.moneysavingexpert.com/news/2018/10/autumn-budget-2018--income-tax/

Musicwolf

All very nice but HMRC has kindly decided to raise the 'benefit in kind' value of my car to over £9k meaning that I pay just over £3,600 in tax on it.  Since choosing it 3 years ago (we keep our company cars 4 years) it has been decided that diesel is evil and I am being punished accordingly. 

RandallFlagg

Majorscale said:

Not sure where you sourced your figures from @RandallFlagg, but it’s not quite as bad for the basic rate tax payers, nor quite as good for the higher rate earners due to the combined effect of income tax and national insurance threshold changes. Here's a good breakdown of the gains depending on your income band...

https://www.moneysavingexpert.com/news/2018/10/autumn-budget-2018--income-tax/

Dammit, I didn't realise NI was changing as well. Scrub the R Whites Waz, put it back on the shelf...

shrinkwrap

RandallFlagg said:

Dammit, I didn't realise NI was changing as well. Scrub the R Whites Waz, put it back on the shelf...

They'll be doing that so that for those who like the NHS they can say "look what your NI goes towards supporting"

while for the rest they can say "look how much the NHS costs out of your NI, vote for us and we'll privatise it"

Travisthedog

Musicwolf said:

All very nice but HMRC has kindly decided to raise the 'benefit in kind' value of my car to over £9k meaning that I pay just over £3,600 in tax on it.  Since choosing it 3 years ago (we keep our company cars 4 years) it has been decided that diesel is evil and I am being punished accordingly. 

I feel your pain. Jut had my tax code through and my environmentally friendly little skoda superb 1.4 petrol now costs me over 9 grand, and its only gonna get worse with th enew WLTP emissions figures in 2020

rlw

And your automatic enrolment contrubutions will be increasing too - up to 5% I think -  unless you are foolish enough to have opted out.

Strat_a_tat_tat

rlw said:

And your automatic enrolment contrubutions will be increasing too - up to 5% I think -  unless you are foolish enough to have opted out.

I think it may vary depending on employer.
I think the top line rate increases to 8%... but at least 3% must be paid by the employer (so I guess there are some employees that are lucky enough to have an employer that pays more than 3%)

grungebob

How does effect the married tax allowance then if the 40% pay band drops to 20%?

joneve

Workplace pension employers contribution is going up too so that'll take some out of your pay, if you are enrolled. 

Heartfeltdawn

RandallFlagg said:

 For anyone not aware (I wasn't) the tax thresholds change in April.

The threshold at which you start paying 20% is raising to £12,500 so that's £10.83 a month extra you'll get in your pay packet and for anyone earning over the 40% tax threshold, that is increasing to £50,000 so you will only pay 20% tax on £3650 instead of 40% so that's another £60.83 you'll see in your pay packet each month.

So big earners could be £71 a month better off.

This doesn't apply to socialists or labour voters though, theirs gets distributed among the Tory voting faithful.

Don't forget council tax rises likely across the country.