Income tax rate thresholds

[nice2BeNice]

Sorry, if this is glaringly obvious/common knowledge for everyone.

All my working life so far, I have been on the basic rate of income tax, i.e., the 20% bracket (partly because I have been working part-time)

I am looking to increase my working hours. This could potentially take me to the 40% threshold. Its all just a thought experiment at the moment. But, assessing how much of a difference it is going to make to my take home pay.

www.gov.uk/income-tax-rates

Using this link,
accounting for 0% personal allowance amount of 12570,
annual salary of £50,270 will give a take home salary of 3,560 pcm
and
annual salary of £50,271 will give a take home salary of 2,932 pcm

Or
Is this calculated in a staggered fashion?
As in, annual salary of £50271 or more,
upto £50270 is taxed at 20% and the rest at 40%

£0-12570 @0%
£12571-50270 @20%
£50271-£100k @40%

So as per your last section, it's staggered. This is why people adjust their incomes to put more in pensions and the like if they are about to cross a threshold which would be taxed more. At £50270 you get say 80p of each £1 (to simplify it). If you then earn £10 more you'd only see £6 because it's being taxed at 40%

It's progressive so you aren't worse off by earning more (this change if you earn more than £100k and lose the personal allowance, but you don't seem to be in that position yet).

You also need to account for NI, your pension and any student loan repayments and possibly benefits like a company car) but it's easier to use a calculator such as listentotaxman.com/

Be aware that if you receive child benefit you progressively lose this when you earn above £50k after pension contributions and this, especially if combined with student loan repayments and especially if you have say 2/3/4 DC could mean that the marginal rate between 50 and 60K is quite high, due to 40% tax, 9% student loans, 2% NI, (I think) your pension contributions and the loss of CB (variable) could mean you lose well over half the extra pay above £50k and you might decide it's not worth working the extra, or at least put the money into a pension to mitigate the above deductions.

Thanks everyone.

Not eligible for CB as DH's income is higher than the eligiblity criteria
Last time I checked, it was the household income that was used for the eligibility criteria.

Putting more into pensions is something worth looking at

Thanks again

Doesn't affect you if DH is above £60k anyway but CB is based on the highest earner, not household

Depending on DHs income, you might find you are better off as a household if you both pay into private pensions/charity contributions, bringing each net income to 50k, plus claiming back tax overpayments and CB. Very worth looking at.