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Original poster

To be annoyed at the new tax brackets?

307 replies

Justbrowsing2024 · 26/02/2025 19:44

Means myself and lots of people I know will need to pay 40% tax. The new thresholds being lowered means we will be worse off at a time when everything is going up. I know it's only on a proportion of salary but it's a proportion that was going towards the increase in mortgage (due to come off an amazing low rate), imminent increase in childcare fees, council tax and everything else.
I know it's affecting so many people but today I have felt really flat.

I'm not anywhere near the top of the threshold (£45500 salary) and unlikely to get a payrise.
I'm sure tomorrow will feel brighter but feel free to join my pity party

OP posts:
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Original poster
Justbrowsing2024 · 26/02/2025 20:18

Merryoldgoat · 26/02/2025 19:56

You honestly think that they’ll just increase tax by £400 a month for a load of people without warning?

I’m starting to understand what it means when people quote the average reading age being 10 in The UK.

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No need to be a dick is there. If I have misunderstood then that's great

OP posts:
Original poster
Justbrowsing2024 · 26/02/2025 20:17

Theimpossiblegirl · 26/02/2025 19:51

I got this and didn't recall hearing about changes beforehand. It's actually pretty shit.

This is what I saw. If I have misunderstood I will be over the moon.

OP posts:
BlumminFreezin · 26/02/2025 20:17

LittleBearPad · 26/02/2025 20:12

It is clear. The personal allowance can change depending on a number of factors. Mine is currently expected to be about £4,500 this year.

People need to read and they need to think.

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I disagree. At first glance, it very much does look like the higher bracket tax rate has dropped.

It doesn't take much to make it clear for the majority of UK tax payers who WILL have the standard UK allowance. It doesn't take much to add an extra couple of links with adjusted information for if you have married persons tax allowance or earn over £100k.

Cookiesandcandies · 26/02/2025 20:17

NewJobityJob · 26/02/2025 20:15

Interesting this has been posted today and maybe I fall into the ‘thick’ bracket but I never realised that if your tax code is reduced (mine is £7200 ish to account for medical insurance) that it also reduces the next bracket, so I still get £33770 at 20% but means I hit 40% at £45k ish instead of £50k.

Genuinely didn’t know this, and didn’t expect to hit the 40% bracket but have done this month.

I think you’ve misunderstood. Your tax code is reduced because of medical insurance, but you still get your full personal allowance (assuming you’re paid less than £100k). Some of the £12,500 is just used up by the medical insurance. It doesn’t change your other thresholds though.

The medical insurance is just another way of getting paid and you’re taxed like you got the cash equivalent to the medical insurance.

LakieLady · 26/02/2025 20:16

This stuff really should be taught in schools.

VivienneDelacroix · 26/02/2025 20:16

Theimpossiblegirl · 26/02/2025 19:57

It's a misunderstanding. It's ok to get things wrong sometimes. Better to be wrong than rude.

But bizarre that so many people seem to lack basic comprehension. It really is a worry.

NewJobityJob · 26/02/2025 20:15

Interesting this has been posted today and maybe I fall into the ‘thick’ bracket but I never realised that if your tax code is reduced (mine is £7200 ish to account for medical insurance) that it also reduces the next bracket, so I still get £33770 at 20% but means I hit 40% at £45k ish instead of £50k.

Genuinely didn’t know this, and didn’t expect to hit the 40% bracket but have done this month.

HomemadeMuffin · 26/02/2025 20:13

BlumminFreezin · 26/02/2025 20:11

I'm not disagreeing that they should be.

However, whomever is responsible for writing that gov page needs retraining to put it mildly. It's NOT clear.

Yes, technically the info is there. You can do the maths and work it out. Something that shouldn't be necessary when reading a government information web page.

It should be clear and explicit. It's really not. If you have to read it twice to still the momentary panic, the person who wrote the page missed their mark.

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It is clear though.

LittleBearPad · 26/02/2025 20:12

BlumminFreezin · 26/02/2025 20:11

I'm not disagreeing that they should be.

However, whomever is responsible for writing that gov page needs retraining to put it mildly. It's NOT clear.

Yes, technically the info is there. You can do the maths and work it out. Something that shouldn't be necessary when reading a government information web page.

It should be clear and explicit. It's really not. If you have to read it twice to still the momentary panic, the person who wrote the page missed their mark.

Show quote history

It is clear. The personal allowance can change depending on a number of factors. Mine is currently expected to be about £4,500 this year.

People need to read and they need to think.

BlumminFreezin · 26/02/2025 20:11

TheMorels · 26/02/2025 19:59

This is why basic finance and income tax should be included in the curriculum.

I'm not disagreeing that they should be.

However, whomever is responsible for writing that gov page needs retraining to put it mildly. It's NOT clear.

Yes, technically the info is there. You can do the maths and work it out. Something that shouldn't be necessary when reading a government information web page.

It should be clear and explicit. It's really not. If you have to read it twice to still the momentary panic, the person who wrote the page missed their mark.

Schoolchoicesucks · 26/02/2025 20:07

Curious where OP has come across this without googling news coverage or even HMRC website which surely would have cleared up by showing year on year figures.

OP, you've misunderstood. You're still going to be paying 20% on some of your income (and 0% on some). No 40% in sight.

Beekeepingmum · 26/02/2025 20:07

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I think some it is deliberate misinformation on social media as well.

PandoraSox · 26/02/2025 20:05

Aw, OP. I hope you feel better now you know there is no actual change.

PieCorner · 26/02/2025 20:05

"It’s not a misunderstanding. It’s either rage-bait or an inability to think clearly before posting utter tripe."

Exactly this, so we can all lose our shit at the bastard government. Critical thinking is a dying art.

AtomicBlondeRose · 26/02/2025 20:02

TheMorels · 26/02/2025 19:59

This is why basic finance and income tax should be included in the curriculum.

You think if people can’t understand something in black and white in a page in front of them, they’re going to be able to accurately remember and apply information learnt 20 years ago (which is probably far out of date?)

MidnightPatrol · 26/02/2025 20:01

AtomicBlondeRose · 26/02/2025 19:59

Because at that point you lose your personal allowance.

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I know, but I think people generally aren’t aware of that either!

Merryoldgoat · 26/02/2025 20:00

Theimpossiblegirl · 26/02/2025 19:57

It's a misunderstanding. It's ok to get things wrong sometimes. Better to be wrong than rude.

It’s not a misunderstanding. It’s either rage-bait or an inability to think clearly before posting utter tripe.

TheMorels · 26/02/2025 19:59

This is why basic finance and income tax should be included in the curriculum.

Huckleberries · 26/02/2025 19:59

@Justbrowsing2024 curious where you got this info!

AtomicBlondeRose · 26/02/2025 19:59

MidnightPatrol · 26/02/2025 19:57

It is presented a bit confusingly, given it then shows the 45% at £125k (which you would expect to see).

Because at that point you lose your personal allowance.

35965a · 26/02/2025 19:58

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😂

MidnightPatrol · 26/02/2025 19:57

It is presented a bit confusingly, given it then shows the 45% at £125k (which you would expect to see).

Theimpossiblegirl · 26/02/2025 19:57

It's a misunderstanding. It's ok to get things wrong sometimes. Better to be wrong than rude.

Merryoldgoat · 26/02/2025 19:57

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Succinct. Also true.

Sakai · 26/02/2025 19:57

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🤣