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So what are income tax rates at the moment if you earn less than £10k?

6 replies

fairylights · 16/12/2011 10:42

I've just got a job Xmas Grin part time so will earn just about £10,000 a year and was under the impression that recent government policy changes meant that I wouldn't be paying any income tax on that £10k, but when I just went on a take-home pay calculator site it said that I would be paying tax on about £3,500 of my earnings.. what are the rates at the moment please? thanks! Xmas Smile

OP posts:
azazello · 16/12/2011 10:47

lots of useful stuff here. Personal allowance at the moment is £7,475 and then tax at 20% on the remainder.

The coalition has agreed a policy that will raise the threshold to £10k but I think it is linked to the Universal credit so will come in more or less simultaneously with that.

fairylights · 16/12/2011 11:24

thanks for that link, when does the universal credit come in? cheers Xmas Smile

OP posts:
MrsHuxtable · 16/12/2011 11:58

April 2013.

MrAnchovy · 16/12/2011 13:21

Use [http://www.mranchovy.com/calc this calculator]] Grin

MrAnchovy · 16/12/2011 13:22

Use this calculator Blush

MrAnchovy · 16/12/2011 13:26

... but the allowances are for each tax year which starts in April so you will not earn enough to pay tax this year (£7,475). But If you have not given your employer the correct information (or they have not used it correctly) you might have tax deducted on your pay slips which you can claim back.

Watch out for this, because in April your take-home pay will go down as tax for the new year kicks in unfortunately.

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