Brandane62:
Problem is, you will have paid 40% tax on everything you earned over £35k in tax year 2020/21, which is why your average tax paid is over 20%.
Why do people still not understand how ■■■■■■ income tax works? The number of people who seem to think either you pay 40% on everything or 40% above your personal allowance or 40% on whatever number they pulled out their arse just because you earn enough to put you in that bracket is truly shocking.
It’s simple beyond belief:
Personal Allowance: Up to £12,570 0%
Basic rate: £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
Conor:
So only any income ABOVE £50,270 is taxed at 40%.
So you’re saying is…you only get to keep half of what you earn ABOVE £50,270. (40% tax + 10% NI or more let’s pretend you don’t pay 2nd pension) so if your rate is £16 per hour (nights) it’s actually £8 p.h. to put it in real terms or if you’re on £20 OT it’s actually £10
Conor:
So only any income ABOVE £50,270 is taxed at 40%.
So you’re saying is…you only get to keep half of what you earn ABOVE £50,270. (40% tax + 10% NI or more let’s pretend you don’t pay 2nd pension) so if your rate is £16 per hour (nights) it’s actually £8 p.h. to put it in real terms or if you’re on £20 OT it’s actually £10
Conor:
So only any income ABOVE £50,270 is taxed at 40%.
So you’re saying is…you only get to keep half of what you earn ABOVE £50,270. (40% tax + 10% NI or more let’s pretend you don’t pay 2nd pension) so if your rate is £16 per hour (nights) it’s actually £8 p.h. to put it in real terms or if you’re on £20 OT it’s actually £10
You can use it to see how much of any proposed rise or overtime you will actually see in your back pocket.
If you pop in a gross figure of £50,500 (ie just over the threshold for Higher Rate tax for most folk) you get a take-home figure of £37979. If you did four hours’ overtime at £25 an hour your gross would be £100 higher but your take home would only increase by £58 - which equates to £14.50 for every extra hour worked.
PAULSMC:
“Thanks for the replies!! How many hours did you have to do for that a week?”
About 60 probably on average.
And “what supermarket.”
C’mon I can’t do all the hard work for you
So you worked somewhere in the region of 3000 hours, making an average hourly rate of £17 per hour. Presumably a good whack of your pay is at an overtime rate, and it’s nightshift. I’m guessing the normal nightshift rate is about £15 per hour. Top line looks impressive, but you’ve worked a load of hours for it!
Problem is, you will have paid 40% tax on everything you earned over £35k in tax year 2020/21, which is why your average tax paid is over 20%. Then NI deductions on top of that.
Personally, I would prefer to cut my hours once the earnings take me over the 20% tax rate (this year that threshold has been increased to £50270). It would break my heart knowing that over 40% of my earnings were going straight to HM Treasury. Not that it’s likely to happen in my case!
If you go over the higher rate,you can put this extra money into your pension and nit pay any tax on the extra because pension contributions are taken out before they apply the tax
Sploom:
If you go over the higher rate,you can put this extra money into your pension and nit pay any tax on the extra because pension contributions are taken out before they apply the tax
In theory - although many (most?) company schemes don’t have any mechanism by which you can make additional contributions on an ad hoc basis just because you did a little extra OT this week.
Sploom:
If you go over the higher rate,you can put this extra money into your pension and nit pay any tax on the extra because pension contributions are taken out before they apply the tax
In theory - although many (most?) company schemes don’t have any mechanism by which you can make additional contributions on an ad hoc basis just because you did a little extra OT this week.
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I’m sure he means once you reach £50k in the year you log in into your pension account and max the % then lower it again next year, all of which is still pointless imo
Roymondo:
In theory - although many (most?) company schemes don’t have any mechanism by which you can make additional contributions on an ad hoc basis just because you did a little extra OT this week.
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So open a SIPP like I have and do it yourself. The SIPP provider will reclaim the basic rate 20% and you’ll have to do a manual reclaim for the additional 20% for any income that was in the higher tax bracket that you paid into your SIPP.
My earlier post didn’t make it clear what average annual earnings are for class 1 drivers down south.
I hear 45-55k is doable with long hours etc and I hear supermarkets can pay quite well.
Anyone in here earning that sort of money?
Thanks for all the replies!
P.s no depressing comments lol
I’m doing £45k-£50k on a 26 tonne rigid down south after our 23.49% pay rise and £3,500 bonus. Granted it’s long hours, 55-65 hours a week but only M-F, no hand balling, no nights out. Crazy early starts 2.30am-4am but Nationwide work and I love it.
Wouldn’t it be better, if earning over 50k and above the higher tax threshold - to spend either 6 months outside the UK, or about the same amount of time sitting out, so you get a hefty tax rebate?
Eg.
Earn £4800 gross every month for 12 months, total earned £57600, takehome similar to the posted payslip above…
OR earn £4800 every other month, total earned £28,800, pay enough less tax that you can get by on the months in between, a bit like being on 80% furlough init? Get your holidays in this bit on top, and be able to take your holidays during low season, and thus saving money there as well…?
…You’d also be sharing a job out, if you think about it as well…
I’m on target to gross £26-28k on a 6 month contract average 50hr p/w, that finishes next month. Specialist, non-ADR tanker work. I’ll have a few months off then be back for Royal mail Christmas pressure for 2 months. Hopefully get to around £35-37k for the year for 8 months work.
Coventry Live according to their reporters you can earn up to £50k, as a lorry driver, as usual no mention of the silly o`clock hours or 5/7 shift working or sleeping in a “box” away from home 5 nights a week. Again nothing much mentioned about the cost of getting your licence and all the other legal requirements,and thats before finding a Company
willing to take on a complete “newbie” to drive a motor thats cost an arm a leg to buy and put on the road.
Most likely got their figures from the RHA or some tin pot outfit that been a bit evasive withe truth
Brandane62:
Problem is, you will have paid 40% tax on everything you earned over £35k in tax year 2020/21, which is why your average tax paid is over 20%.
Why do people still not understand how [zb] income tax works? The number of people who seem to think either you pay 40% on everything or 40% above your personal allowance or 40% on whatever number they pulled out their arse just because you earn enough to put you in that bracket is truly shocking.
It’s simple beyond belief:
Personal Allowance: Up to £12,570 0%
Basic rate: £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
So only any income ABOVE £50,270 is taxed at 40%.
I’ve met plenty of people over the years - who refused to ever do overtime, because they thought they’d be losing 40% of it to tax…
Even if you DID - you’d get it back as a rebate at the end of the tax year, should your normal working hours drop your pay back down to below the upper threshold again…
