To be annoyed at the new tax brackets?

[Justbrowsing2024]

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

It also shows that people see random crap on social media as fact. Which is just as worrying. Not the OP but almost certainly her colleagues who told her this.

You may do but I doubt you advise many normal people who only pay PAYE and don’t so much or any tax planning. Maybe HNWIs are more your thing or companies.

Yes, although I also think lots of people have always been credulous and believe things even if they don't make sense. Hence Brexit.

Do you work at Tory HQ?

People understand earnings to be money they receive and from which tax is deducted - salary, car allowances, London weighting etc. It’s tangible - it’s cash.

Benefits which are received paid for by an employer (PMI etc) are not tangible in the same way - it’s non-cash - a notional payment.

Frankly when they make payrolling mandatory it will be far easier. But when it’s on your payslip you won’t be PAID the money and THEN deducted (as in earnings) - your benefit is given a value and the appropriate tax deducted.

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

The example of health insurance as a taxable benefit isn't really about understanding tax thresholds and law but basic maths

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!

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.

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

Not really if that personal allowance moved

It’s exactly the same in England

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

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

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.

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.

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

No it hasn’t

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

Jesus, it's propaganda central today.

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.

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!

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.

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.