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If someone pays £20K in tax - how much do they earn?

8 replies

TheBrilloPad · 30/01/2018 13:30

I'm shit at maths, always have been. But I know that a relative paid almost £20,000 tax this year, and want to know how much they earn! Just being nosey mostly! Their tax bill is more than I earn in 18 months so my mind was boggling at how much they would have to earn to pay that much tax and I couldn't figure it out!

Is there anyone who is smart at tax stuff who can give me a ball park figure?

OP posts:
catlovingdoctor · 30/01/2018 13:33

Approx 60-65k per year

ShowMeTheElf · 30/01/2018 13:35

If the 20K is tax and NI then 65K approx, If tax only then nearer 80K

TalkinPeace · 30/01/2018 13:36

20% of everything over £11500
40% of everything over £45000
12% of everything over £8600
tax adds up pretty quickly

7% dividend tax on anything over £5000 added in
plus capital gains
and maybe on a rental propertly

BarbaraofSevillle · 31/01/2018 10:12

You could look at an online calculator like listentotaxman and enter annual salaries until you find one that ends up with £20k tax paid.

But the amount of tax paid will depend on whether they have a pension, any benefits from work like a company car or health insurance, buy childcare vouchers etc.

But the suggestions above in the £60-80k ballpark are probably correct - due to the progressive tax system, higher earners pay far more as a percentage, so someone on £12k will pay almost no tax, someone on £40k will pay around £10k in tax and NI and someone on £60k will pay around £17k in tax and NI and someone on £80k will pay around £26k. NI is effectively just another tax.

Chienrouge · 31/01/2018 10:15

Hard to say as it can be quite complex depending on perks such as company cars and bonuses etc. DH pays about 30k in tax but it’s on salary, bonus, company car, healthcare etc and we also have a staff mortgage so pay tax on that.

idontlikealdi · 31/01/2018 10:19

65ish

thatstoast · 31/01/2018 10:30

According to listentotaxman:

Tax Only - 80k
Tax & NI 70K

(with no pension or other deductions)

LizzieSiddal · 31/01/2018 15:17

It all depends on if they are employed or self employed, have ltd company.

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