Stoney McFried
Well-Known Member
I found this on yahoo answers, can't vouch for the accuracy.
Well in the UK, the main taxes we have to pay are the Income Tax, which as in America is a progressive system, the amount you pay is dependent on how much you earn. The more you earn, the more you pay, theoretically. We also pay something called National Insurance which pays for the pensions of today's retirees and pensioners.
We also get a personal allowance, a fixed amount that is tax free, ie. it isn't included in tax calculations. Currently, a single person has a personal allowance of £5,435.
NOTE: THE FOLLOWING CALCULATIONS ARE FOR A SINGLE PERSON IN PAID EMPLOYMENT
The current income tax brackets are:
Starting rate (£0-£36,000) - 20%
Higher rate (over £36,000) - 40%
People earning:
£10,000 - £913 paid in tax (9% tax rate)
£15,000 - £1,913 paid in tax (13% tax rate)
£20,000 - £2,913 paid in tax (19.5% tax rate)
£40,000 - £6,913 paid in tax (17.25% tax rate)
£100,000 - £30,626 paid in tax (30.5% tax rate)
So there is a slight discrepancy with people earning £40,000 a year in that they pay a slightly less proportion of their income in income tax and I think the recent abolition of the starting rate of 10% was the cause of that.
National Insurance is far more complicated to calculate as it is based off your weekly income. I've done the calculations for you here as follows:
People earning:
£10,000 - £585 paid in NI
£15,000 - £1,135 paid in NI
£20,000 - £1,685 paid in NI
£40,000 - £3,885 paid in NI
£100,000 - £4,490 paid in NI
Thus the basic taxes, the ones you see on your payslip each month are as follows, in total:
People earning:
£10,000 - £1,498 paid in tax (15% tax rate)
£15,000 - £3,048 paid in tax (20% tax rate)
£20,000 - £4,598 paid in tax (23% tax rate)
£40,000 - £10,798 paid in tax (27% tax rate)
£100,000 - £35,116 paid in tax (35% tax rate)
So that's the amount we pay in basic taxes, but we pay a lot more taxes in the forms of a Sales Tax we call Value Added Tax which is applied to all non-essential items, which is at 17.5%. Then we have a petrol tax (Fuel Duty), then we also have duty to pay on cigarettes, cigars, alcohol etc. Depending on how you spend your money and what you spend it on, you could end up pay up more in tax.
Source(s):
HMRC Website and mathematical know how
Well in the UK, the main taxes we have to pay are the Income Tax, which as in America is a progressive system, the amount you pay is dependent on how much you earn. The more you earn, the more you pay, theoretically. We also pay something called National Insurance which pays for the pensions of today's retirees and pensioners.
We also get a personal allowance, a fixed amount that is tax free, ie. it isn't included in tax calculations. Currently, a single person has a personal allowance of £5,435.
NOTE: THE FOLLOWING CALCULATIONS ARE FOR A SINGLE PERSON IN PAID EMPLOYMENT
The current income tax brackets are:
Starting rate (£0-£36,000) - 20%
Higher rate (over £36,000) - 40%
People earning:
£10,000 - £913 paid in tax (9% tax rate)
£15,000 - £1,913 paid in tax (13% tax rate)
£20,000 - £2,913 paid in tax (19.5% tax rate)
£40,000 - £6,913 paid in tax (17.25% tax rate)
£100,000 - £30,626 paid in tax (30.5% tax rate)
So there is a slight discrepancy with people earning £40,000 a year in that they pay a slightly less proportion of their income in income tax and I think the recent abolition of the starting rate of 10% was the cause of that.
National Insurance is far more complicated to calculate as it is based off your weekly income. I've done the calculations for you here as follows:
People earning:
£10,000 - £585 paid in NI
£15,000 - £1,135 paid in NI
£20,000 - £1,685 paid in NI
£40,000 - £3,885 paid in NI
£100,000 - £4,490 paid in NI
Thus the basic taxes, the ones you see on your payslip each month are as follows, in total:
People earning:
£10,000 - £1,498 paid in tax (15% tax rate)
£15,000 - £3,048 paid in tax (20% tax rate)
£20,000 - £4,598 paid in tax (23% tax rate)
£40,000 - £10,798 paid in tax (27% tax rate)
£100,000 - £35,116 paid in tax (35% tax rate)
So that's the amount we pay in basic taxes, but we pay a lot more taxes in the forms of a Sales Tax we call Value Added Tax which is applied to all non-essential items, which is at 17.5%. Then we have a petrol tax (Fuel Duty), then we also have duty to pay on cigarettes, cigars, alcohol etc. Depending on how you spend your money and what you spend it on, you could end up pay up more in tax.
Source(s):
HMRC Website and mathematical know how
- 1 year ago
In their system...nobody. But what to do? They've already paid into the system through high taxes...they absolutely do not have enough to go to a private doctor.