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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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7
Talkinpeace · 26/02/2025 21:24

Boy oh boy Jeremy Hunt played you lot over the last few years

NewJobityJob · 26/02/2025 21:20

Still thinking this over 😂

Is it not a double hit though if they reduce your tax code and count it as ‘earning’, so I’ve paid 20% on the PMI by losing £5k from my tax free allowance and I’ve paid also paid 40% £5k earlier then I would have without it?

tilypu · 26/02/2025 21:19

rockstarshoes · 26/02/2025 21:09

Yes I know the employer pays it, but employee pays the tax on it!

Employer will pay the NIC - I just think it would be good to encourage Employers! to help their employees without anyone being penalised!

Propaganda lol!

Surely getting treatment quicker is a really good thing!

No one wants to waiting 6 months for an Op! Employer or Employee!

So are you suggesting that companies should ignore tax law?

PandaTime · 26/02/2025 21:16

rockstarshoes · 26/02/2025 21:09

Yes I know the employer pays it, but employee pays the tax on it!

Employer will pay the NIC - I just think it would be good to encourage Employers! to help their employees without anyone being penalised!

Propaganda lol!

Surely getting treatment quicker is a really good thing!

No one wants to waiting 6 months for an Op! Employer or Employee!

Employers don't have control over what is taxable and what isn't.

Employers are helping their employees by paying for medical insurance. If they didn't, the employee would have to pay for it themselves if they wanted it.

NewJobityJob · 26/02/2025 21:15

EverythingElseIsTaken · 26/02/2025 20:58

It’s really simple… think of the £5k medical insurance as “income” add that to the £45k and you are only paying 40% on income over £50k. The insurance is a taxable benefit so is added to your taxable pay by reducing your personal allowance.

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It’s simple when you know. That’s my point. I was aware that it reduced my tax free allowance, I didn’t know it also effected the next band. Now I know, I get it.

Merryoldgoat · 26/02/2025 21:15

NewJobityJob · 26/02/2025 21:12

I could be totally wrong, but I don’t think it’s a case of encouraging employers to pay it, I don’t think they are allowed to give it tax free.

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You are correct. If an employer pays it for an employee without recharging them it’s a benefit and therefore taxable.

SerendipityJane · 26/02/2025 21:14

Justbrowsing2024 · 26/02/2025 21:11

Just because something is 'basic' to one person, it may not be to another. Things can be misunderstood. It's the nature of being human. We aren't all perfect. It was a mistake which I now understand and will share at work tomorrow.

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Oh, I agree.

But you said this was several people ? And it's not a proposition from Wittgenstein

NewJobityJob · 26/02/2025 21:12

rockstarshoes · 26/02/2025 21:09

Yes I know the employer pays it, but employee pays the tax on it!

Employer will pay the NIC - I just think it would be good to encourage Employers! to help their employees without anyone being penalised!

Propaganda lol!

Surely getting treatment quicker is a really good thing!

No one wants to waiting 6 months for an Op! Employer or Employee!

I could be totally wrong, but I don’t think it’s a case of encouraging employers to pay it, I don’t think they are allowed to give it tax free.

Original poster
Justbrowsing2024 · 26/02/2025 21:11

SerendipityJane · 26/02/2025 21:08

That is quite a lot of people to misunderstand something relatively basic. There's no nice way to put it. Either they just took other peoples word as gospel (not great) or they went to check and couldn't follow basic details.

Show quote history

Just because something is 'basic' to one person, it may not be to another. Things can be misunderstood. It's the nature of being human. We aren't all perfect. It was a mistake which I now understand and will share at work tomorrow.

OP posts:
rockstarshoes · 26/02/2025 21:09

Yes I know the employer pays it, but employee pays the tax on it!

Employer will pay the NIC - I just think it would be good to encourage Employers! to help their employees without anyone being penalised!

Propaganda lol!

Surely getting treatment quicker is a really good thing!

No one wants to waiting 6 months for an Op! Employer or Employee!

SerendipityJane · 26/02/2025 21:08

Justbrowsing2024 · 26/02/2025 20:51

Thank you for explaining, I feel much better. And for those that had to be mean, I hope you feel better now lol.
I had no reason to doubt so many people at work. They aren't thick, can read, don't have the reading age of a 10 year old etc etc. It isn't explained on the website in the same way it has been in previous years so it wasnt clear to me. I looked at the website and it seemed to confirm what I had been told. I also haven't received a letter.
Happy to be wrong!

That is quite a lot of people to misunderstand something relatively basic. There's no nice way to put it. Either they just took other peoples word as gospel (not great) or they went to check and couldn't follow basic details.

TheWombatleague · 26/02/2025 21:04

rockstarshoes · 26/02/2025 21:03

Totally missing the point of the thread but I think they should stop Private Medical insurance being a taxable benefit!

Encourage Employers to pay it for their employees!

Take some pressure off the NHS & give workers access to Private GP's, shorter waits for treatment!

Might actually improve productivity!

Jesus, it's propaganda central today.

throwaway25 · 26/02/2025 21:04

rockstarshoes · 26/02/2025 21:03

Totally missing the point of the thread but I think they should stop Private Medical insurance being a taxable benefit!

Encourage Employers to pay it for their employees!

Take some pressure off the NHS & give workers access to Private GP's, shorter waits for treatment!

Might actually improve productivity!

The employer does pay it though. The employee just pays the tax on it as they've received the "value" of the premium paid for by the company

rockstarshoes · 26/02/2025 21:03

Totally missing the point of the thread but I think they should stop Private Medical insurance being a taxable benefit!

Encourage Employers to pay it for their employees!

Take some pressure off the NHS & give workers access to Private GP's, shorter waits for treatment!

Might actually improve productivity!

MovedByFanciesThatAreCurled · 26/02/2025 21:02

Redrosesposies · 26/02/2025 19:52

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

No it hasn’t

throwaway25 · 26/02/2025 21:00

The screenshot that is confusing people comes from a page which is meant for employers for payroll purposes - here https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2025-to-2026

It's not aimed at employees. Classic example of distorted social media

LittleBearPad · 26/02/2025 20:58

Justbrowsing2024 · 26/02/2025 20:54

This is the current year. Clear. The 25-26 year looks different and what I misunderstood

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25/26 thresholds are the same as now. That’s a whole other issue though - thresholds are frozen until 2028 or so

The table only works if personal allowances don’t change hence the confusion upthread about medical insurance is which is a taxable benefit.

EverythingElseIsTaken · 26/02/2025 20:58

NewJobityJob · 26/02/2025 20:32

I totally get the £5k reduction and paying 20% on that part.
What I didn’t understand is that I would pay 40% before reaching £50k (it’s brought that down to £45kish)

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It’s really simple… think of the £5k medical insurance as “income” add that to the £45k and you are only paying 40% on income over £50k. The insurance is a taxable benefit so is added to your taxable pay by reducing your personal allowance.

MuchasSmoochas · 26/02/2025 20:56

Merryoldgoat · 26/02/2025 20:53

It’s exactly the same in England

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i was comparing to a previous post which had a different view.

To be annoyed at the new tax brackets?
Original poster
Justbrowsing2024 · 26/02/2025 20:54

JoyousEagle · 26/02/2025 20:52

What do you mean "much clearer". It's exactly the same layout and information as this one on the gov.uk website.

Show quote history

This is the current year. Clear. The 25-26 year looks different and what I misunderstood

OP posts:
Merryoldgoat · 26/02/2025 20:53

MuchasSmoochas · 26/02/2025 20:49

Also look how Scottish Government explains it, it is much clearer and easier to understand. (The rates are different)

It’s exactly the same in England

To be annoyed at the new tax brackets?
LittleBearPad · 26/02/2025 20:53

MuchasSmoochas · 26/02/2025 20:49

Also look how Scottish Government explains it, it is much clearer and easier to understand. (The rates are different)

Not really if that personal allowance moved

JoyousEagle · 26/02/2025 20:52

MuchasSmoochas · 26/02/2025 20:49

Also look how Scottish Government explains it, it is much clearer and easier to understand. (The rates are different)

What do you mean "much clearer". It's exactly the same layout and information as this one on the gov.uk website.

To be annoyed at the new tax brackets?
Turmerictolly · 26/02/2025 20:51

Not knocking the OP and others that were confused by this but it does show how misguided it was to trust the decision about Brexit to the British public.

Original poster
Justbrowsing2024 · 26/02/2025 20:51

Thank you for explaining, I feel much better. And for those that had to be mean, I hope you feel better now lol.
I had no reason to doubt so many people at work. They aren't thick, can read, don't have the reading age of a 10 year old etc etc. It isn't explained on the website in the same way it has been in previous years so it wasnt clear to me. I looked at the website and it seemed to confirm what I had been told. I also haven't received a letter.
Happy to be wrong!

OP posts: