Please or to access all these features

AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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:
Thread gallery
7
Negroany · 28/02/2025 18:01

llizzie · 28/02/2025 14:59

Did I say 100% across the board? Your post is pedantic. This is what google says:

A pay rise or boost in earnings is always worth celebrating. However, increased earnings can push you into a higher Income Tax bracket or lead to a larger overall tax bill. As a result, while your income will grow, you may lose a significant portion of that extra money to taxes.

If you ever watch or listen to the news, or read it online, you will know that pensioners and low wage earners are being warned of this many times.

To disagree for the sake of it is actually a punishment you are inflicting on yourself, not on me. I am more thick skinned than you think.

This is what you said:

I suspect that some on minimum wage put in as much overtime as they can, which in itself can be clawed back by the taxman.

And you make it seem as if all the overtime is being "clawed back". Obviously it's not. Even your own bloody Googling showed you were wrong. Again.

Paddleboardsandironingboards · 28/02/2025 17:53

The information on PAYE is clear on the .gov website.

https://www.gov.uk/income-tax-rates

There's a paragraph below the allowances table which says:

You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,140.

The original table in this thread is what you get if you specifically click on the phrase I've bolded and italicised , so it's perfectly clear. Someone somewhere just hasn't bothered to actually Google the tax bands, and somehow ended up on the wrong sectio and then a load of other people have taken it as gospel. We're forgetting how to actually think for ourselves...

Anudawan · 28/02/2025 17:37

Theimpossiblegirl · 26/02/2025 19:51

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

That doesn’t include your personal allowance, it’s confusing how they’ve written it but basically nothing has changed

PensionedCruiser · 28/02/2025 17:14

The state pension is rising to £221.20 per week in April - £11502.40 per year, which is still less than the £12570 tax threshold. I suspect that next year, if the pension rises to more than the tax threshold, personal allowances will rise. Historically, tax paying pensioners have always had their total income tax due deducted from other sources of income, leaving the state pension untouched. I think changing that, even though most of us have pensions paid into bank accounts rather than in cash at Post Offices so probably wouldn't notice if it were taxed, would be a huge step.

latetothefisting · 28/02/2025 17:06

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.

You are missing the point that that page is specifically written FOR EMPLOYERS. Even the hyperlink/URL states that clearly and it is repeated on the page itself.

If you've got to the point where you are the person doing the payroll, hopefully you have slightly more knowledge about tax codes than your average member of the public (or, apparently, poster on MN).

The part of the website aimed at the public could not make it any clearer.
https://www.gov.uk/income-tax-rates
There's even a calculator you can use.

You can't blame the person who wrote that page for writing it for their target audience and not muppets randoms from mumsnet who got lost on google

NewJobityJob · 28/02/2025 15:54

SerendipityJane · 28/02/2025 14:18

When I was at school, many decades ago, video recorders hadn't been invented. There was no lesson on them at school.

Yet by the mysterious power of "reading" the manual, I managed to divine the secret art of programming one.

Where's my Nobel prize ?

My point was, even if taught in school most people wouldn’t retain the information until it was relevant.

TheWombatleague · 28/02/2025 15:23

llizzie · 28/02/2025 15:00

What question was that? Did it deserve answering? Did it even look like a question?

How many undocumented migrants (or to use your terminology illegal immigrants) are included in the 1% of people in the UK who own 50% of all the land and hold more wealth than the bottom 70% combined?

How do you square that with your ludicrous claim that only "illegal immigrants" do well in Britain?

B1indEye · 28/02/2025 15:11

llizzie · 28/02/2025 14:59

Did I say 100% across the board? Your post is pedantic. This is what google says:

A pay rise or boost in earnings is always worth celebrating. However, increased earnings can push you into a higher Income Tax bracket or lead to a larger overall tax bill. As a result, while your income will grow, you may lose a significant portion of that extra money to taxes.

If you ever watch or listen to the news, or read it online, you will know that pensioners and low wage earners are being warned of this many times.

To disagree for the sake of it is actually a punishment you are inflicting on yourself, not on me. I am more thick skinned than you think.

How does what you've copied from Google with no reference to where it came from equate to "clawing back"?

There's no shame in admitting you were wrong, of course I'd you earn more you pay more tax and some of that might be at a higher rate but its nonsense to define that as clawing back. Its how taxation works

llizzie · 28/02/2025 15:00

TheWombatleague · 28/02/2025 14:52

You're an idiot if you believe any true socialist would support Reeves. Now, how about you actually answer my question like an adult and not with some gbeebies spoonfed wordsalad?

What question was that? Did it deserve answering? Did it even look like a question?

llizzie · 28/02/2025 14:59

Negroany · 28/02/2025 10:07

Overtime isn't "clawed back" by the tax office, what a nonsensical comment.

You might pay tax on extra money, but not at 100%. Same as with pay rises. Are you suggesting people should be able to get overtime pay (not a legally defined term by the way) tax free?

Why would you wish that train drivers earn less, that's weird.

And I really wish that people would stop equating "pensioner" with "poor". Of course pensioners should pay tax if their income is over the threshold, same as everyone else. They already don't pay NI on pension income so they have a bonus there over working people.

They do, of course, only pay tax on the bit that is over the threshold. Just like everyone else.

Did I say 100% across the board? Your post is pedantic. This is what google says:

A pay rise or boost in earnings is always worth celebrating. However, increased earnings can push you into a higher Income Tax bracket or lead to a larger overall tax bill. As a result, while your income will grow, you may lose a significant portion of that extra money to taxes.

If you ever watch or listen to the news, or read it online, you will know that pensioners and low wage earners are being warned of this many times.

To disagree for the sake of it is actually a punishment you are inflicting on yourself, not on me. I am more thick skinned than you think.

TheWombatleague · 28/02/2025 14:52

llizzie · 28/02/2025 14:32

Spoken like a true communist/socialist. You must absolutely adore Ms Reeves.

I swear she was brought up on Downton Abbey/Upstairs Downstairs and thinks we all live like that: either servile or wealthy.

You're an idiot if you believe any true socialist would support Reeves. Now, how about you actually answer my question like an adult and not with some gbeebies spoonfed wordsalad?

llizzie · 28/02/2025 14:32

TheWombatleague · 28/02/2025 12:09

"Only illegal immigrants do well in Britain" Really? How many of the 1% who own 50% of all the land and more wealth than the bottom 70% combined are illegal immigrants?

Spoken like a true communist/socialist. You must absolutely adore Ms Reeves.

I swear she was brought up on Downton Abbey/Upstairs Downstairs and thinks we all live like that: either servile or wealthy.

SerendipityJane · 28/02/2025 14:18

NewJobityJob · 28/02/2025 12:33

When I was at school many moons ago, I didn’t think I’d have to worry about going into the higher tax band so probably wouldn’t have worried about it too much then but thankfully that is now a consideration.

When I was at school, many decades ago, video recorders hadn't been invented. There was no lesson on them at school.

Yet by the mysterious power of "reading" the manual, I managed to divine the secret art of programming one.

Where's my Nobel prize ?

catmum44 · 28/02/2025 13:03

The £37700 band is on taxable income only. Your first £12570 is tax free. So, you pay nil on £12570, 20% on income between £12570 and £50,270 (~,£37k) and 40% on everything above that. That is calculated on salary minus pension contributions. It's your 'taxable income' that's counted, so pension conts can keep in the lower tax band.

NewJobityJob · 28/02/2025 12:33

Ineedanotherholidaynow · 28/02/2025 11:33

It’s frightening how many people don’t understand tax. They should teach it in school!

When I was at school many moons ago, I didn’t think I’d have to worry about going into the higher tax band so probably wouldn’t have worried about it too much then but thankfully that is now a consideration.

Horserider5678 · 28/02/2025 12:28

Redrosesposies · 26/02/2025 19:52

It's on the Govt website. From 2025 it's 40% on > £37k dropped from £50k

There is no change! Look up 24/25 and compare!

Merryoldgoat · 28/02/2025 12:12

Negroany · 28/02/2025 09:59

God, it's quite painful reading some of these posts! (Not the one I'm quoting, the ones it is responding to)

It really is.

TheWombatleague · 28/02/2025 12:09

llizzie · 27/02/2025 20:30

Of course they will. They will still pay tax, won't they? For some the tax might equal the increase in pension.

Same with minimum wage earners. They will pay tax on anything over the tax threshold too. That could take away most of the increase. They could also lose any benefits they might have received.

Only illegal immigrants do well in Britain.

"Only illegal immigrants do well in Britain" Really? How many of the 1% who own 50% of all the land and more wealth than the bottom 70% combined are illegal immigrants?

Ineedanotherholidaynow · 28/02/2025 11:47

SerendipityJane · 28/02/2025 11:42

Why ? They teach English don't they ? And Mathematics ? What more do you need ?

True!

SerendipityJane · 28/02/2025 11:42

Ineedanotherholidaynow · 28/02/2025 11:33

It’s frightening how many people don’t understand tax. They should teach it in school!

Why ? They teach English don't they ? And Mathematics ? What more do you need ?

amigafan2003 · 28/02/2025 11:37

Ineedanotherholidaynow · 28/02/2025 11:33

It’s frightening how many people don’t understand tax. They should teach it in school!

Although it isn't part of the national curriculum many schools do teach it (and I did teach it as part of FS Maths at a college).

Ineedanotherholidaynow · 28/02/2025 11:33

It’s frightening how many people don’t understand tax. They should teach it in school!

amigafan2003 · 28/02/2025 11:30

LakieLady · 26/02/2025 20:16

This stuff really should be taught in schools.

It is.

amigafan2003 · 28/02/2025 11:29

How can people be seemingly intelligent enough to be earning enough to be in the 40% tax bracket but not understand how much tax they should be paying?

😅

SerendipityJane · 28/02/2025 10:48

Negroany · 28/02/2025 09:59

God, it's quite painful reading some of these posts! (Not the one I'm quoting, the ones it is responding to)

It explains why UK productivity is in the shitter though.