To be annoyed at the new tax brackets?

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.

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

A salary increase is not clawed back. It is taxed, most likely at 20%.

Op, you misunderstood something, that is fine. You admitted it and are relieved about it. You are human and we all have misunderstandings sometime.
Let me tell you something else that is good to learn, the longer into the evening, on mn, the more irritable and grumpy contributors become, maybe the red wine, maybe just get grumpy when they are tired. Just remember next time that if you post something in the evening you WILL get unreasonable and irritable, impatient responses. Sorry you had to endure this last night.

So you were happy with a corrupt government that broke all the Covid rules and had parties while people were dying, who gave multimillion pound PPE contracts to their friends, sanctioned Russian interference in our elections and had a revolving door of 5 Prime Ministers in 6 years?

Nigel is that you? Shouldn’t you be in the US brown nosing the great orange moron?!

The other 'trap' at £50,270, when you starting paying 40% income tax, is that your interest-on-savings allowance drops from £1,000 to £500. So going only slightly above the threshold could mean being worse off -- though only a very few people would probably face that.

Martin Lewis did an explained it's been miscommunicated.
You need to add in the 12k tax free allowance to those figures.
The figures on the website exclude the tax free element for some reason.

Thank you. Everyone acting as though the wording and table was clear. It is not clear.

Yeah by someone who most likely read it on Facebook; took it as truth and started telling other people!
It's not a reading age of 10, it's that they have a critical thinking age of 10 where is it's on the internet it must be true!

I think this is true for almost any of the Government pages related to finance to be honest. Capital gains is unclear about the allowances, Tax-free Childcare doesn't make it clear you have to put in 80% and they do the maths for you- had to explain that to countless people; proportional repayment of child benefit after thresholds are met is clear as mud. They need to test them all with a lay person reading it and asking questions to be honest.

Maybe stop getting your news off Twitter/X, OP??

You won't know that until you know what the minimum wage is and how many hours are worked per week.

There is also the universal credit they may have been able to claim before the pay rise.

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.

I just hope the taxman has clawed back a lot of the extra the train drivers got when the pensioners lost their help with winter fuel.

And a complete lack of critical thought. If it’s on Facebook it must be true. It doesn’t bode well

@latetothefisting you have hit the nail on the head. It is not the misunderstanding, it is the posting of total bollocks on social media that then sets off a chain of frothing

again, it's not being wrong that's an issue.
nobody knows everything
it's jumping on to scaremonger about fake news
surely you can see why that's a problem
minor here but it's emblematic of some of the biggest issues in our society - people believing EVERYTHING they hear or read without pausing for a second or applying the barest minimum of critical thinking - and then making decisions based on completely wrong information - and then rushing to disseminate it so even more people get frothed up.

even in this minor issue, somebody could have read this thread, panicked themselves and turned down a job opportunity because they thought it would result in them paying more tax, or get annoyed and decide to vote a certain way because what OP said sounds so unfair...all because OP announced something completely wrong in a completely definitive way.

OP is clearly capable of starting a thread on MN complaining about an issue so no reason why they couldn't start a thread (or fb post or do a 0.5 second google search or ask the accounts/finance manager at work...) asking about it to check they were correct first. 'AIBU to ask if tax brackets have changed?' isn't any harder to type or more 'intellectually superior' than 'AIBU to be annoyed at new tax brackets?'

Surely if you find something 'confusing and stressful' you should be MORE likely to ask for help to understand it, not less! Five years olds at school would probably be able to guess the right answer to 'If you are confused about something what should you do?'
a - ask a teacher or parent to explain it to you
b - throw a tantrum because you don't understand and tell all the other children the wrong thing to do

And for pensions it would only be tax not NI

Same with minimum wage earners. They will pay tax on anything over the tax threshold too. That could take away most of the increase

How does tax at 20% and NI at 8% take away most of the of the increase?

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.

Do you think there’s enough exclamation! Marks! In your post 😂

I think you've misunderstood something. Your salary doesn't take you into the 40% tax bracket.

I earn £53k and only just fall into it.

How to avoid 40% tax on salary?

Make pension contributions. ...
Claim marriage allowance. ...
Give money to charity. ...
Take advantage of salary sacrifice schemes. ...
Check your tax code. ...
See if you can claim tax relief for working from home. ...
Make the most of Isas. ...
Share capital gains tax.

They will only pay tax on the part of their salary above the personal allowance so still better off by having a wage increase.

It is worse for some others. Ms Reeves increased the minimum wage, but for some earners on minimum wage, they may have to pay tax at 20%m so she will just claw it back again.

She made a speech about the pensioners being better off than ever with their triple lock increases, but that will be over the tax threshold, so they will not be better off either.

Giving with one hand and clawing back with the other. There will be no end to that. Sweet, then bitter. I don't know why people voted for them.