£1 pay rise will cost some Britons £14,000 more as ‘brutal earnings threshold’ breached | Personal Finance | Finance
With income tax, National Insurance, student loan repayments and the personal allowance taper, a simple £1 pay rise taking a person over £100,000 may result in an effective tax rate of 1,395,221 percent.
A personal allowance goes down by £1 for every £2 an adjusted net income is above £100,000.
It means an allowance is zero if one’s income is £125,140 or above.
Laura Suter, head of personal finance at AJ Bell, said: “While it’s a decent salary, £100,000 is rapidly becoming the most brutal earnings threshold to cross, particularly for parents.
READ MORE: State pensioners with joint pain could be due up to £369 each month
Related Posts
Denial of responsibility! TechnoCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.
