How much tax do you pay on £151 K

[Dowser]

Before I lead my grandson up the garden path.
Can anyone point us in the right direction.
I know first 12.5 k is free of tax
My dh says next £50k is at 40 per cent
And the rest is 45 per cent

Is that correct?

Not even close, sorry. There are salary calculators that will work it out for you, one sec...

Thank you..me and dh are so rusty
And he had his own company

www.thesalarycalculator.co.uk

If it's his own company it's completely different from paye.

Tell him to get an accountant

Ah, this is just theoretical

Am trying to show my grandson how it’s worked out

And making a right hash of it 😂

www.thesalarycalculator.co.uk/salary.php

And a breakdown. Part is taxed at 20%

Oh, self employed?

If you’re trying to show how it works I’d probably choose a lower salary to show it as at £151k there is no personal allowance for instance

So if someone is director of their own ltd company, they would usually set themselves up a small salary under the taxable allowance (£680 per month), they then set themselves (and spouse) up as a shareholder (usually 60/40 in directors favour).
You take your whole income minus allowable expenses (salary, work expenses etc) to work out your profit, you then take off 20% corporation tax, you're then left with your amount you can share up for dividends. You get £2k per shareholder tax free then pay 7.5% on the rest.
At that income they'd have to be vat registered so you add vat onto your invoices and pay quarterly to the tax man

You lose the personal allowance at 151k.
Is it PAYE or dividend income as the tax rate is different.
The NI class is also different depending if you are an employee or self employed.