Income tax question

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I am about to start a new job, it's difficult to say how much I will earn because there are variable allowances/payments on top of salary. I think it'll be around 55k all in, my pension is 6.8% (my contribution) this can't be increased due to the nature of the scheme. I'm also still paying off my student loan does this reduce my taxable income?

Any ideas roughly what proportion I will pay 40% on? Also need to take into account if I will lose CB.

You’ll pay 40% on anything over around £50k after deducting your pension contributions.

Student loan won’t make a difference.

A take home salary calculator may be useful in showing what you’ll get each month.

As there are variables everything is guess work really. 6.8% on £55k would leave you in the 40% zone for a couple of thousand so would impact child benefit also

But if some of the package is allowances and other entitlements you may not pay the 6.8% contribution on those amounts

So you need to work out 6.8% of base salary, how the allowances are treated and how much they will be.

You could then consider contributing to a private pension if you really want to retain all child benefit and do a self assessment

Student loans are taken off net pay I thought so already out of the gross fin one figure

The allowances are things like overtime, on call and unsocial hours payments so I don't think they'd be exempt

Google salary calculator uk, you normally have the option to input things like salary sacrifice, pension and student loan to get an accurate idea of take home pay and tax/NI due.

Overtime, on call etc is all taxable pay, but might well not be pensionable pay - so your 6.8% will generally be on base salary.
So take your base salary, take off 6.8% of it, add what you think you will get for on call etc.
As pp said 40% tax kicks in for everything that is above £50k. You can always pay into a private pension to save 40% on tax and keep earnings to £50k

Looking at the calculators I should be able to gross around £54k before falling into the next bracket. Some of the extra payments are optional work, I've been so used to just taking whatever is offered to bump up my pay, I need to just keep an eye on things and in the second half of the year if it looks like I'm cutting it close, start turning down anything that isn't essential. I don't want to work more to be worse off

The tax regime is ridiculous and reduces productivity. They need to increase the 40% tax threshold asap

You can set up a separate pension from your scheme - might be worth looking into.

It's a way of increasing the tax take without making it obvious, and probably brings in quite a bit as more middle earners are dragged into this bracket.

If they increased this threshold, they'd need to increase taxes somewhere else to compensate. Where do you suggest? (clue: taxing Amazon and other billionaires instead isn't the answer).

Hopefully people have finally realised what a self serving shitshow the current government is and the light is at the end of the tunnel as to when we'll see the back of them as there has to be a general election by December 2024 at the latest, so hopefully they'll finally get voted out.

You won't be worse off. You still pay no tax and basic tax up to the threshold and can legally avoid tax by paying into a private pension which benefits you long term too.

That's what you need to check though. I've never had any overtime or callout treated as pensionable pay unless I've explicitly upped my contribution rates to cover it, which you've said you can't.

Fewer people would try to keep their earnings below the threshold so their tax take may probably actually increase

Another one saying pay more in a pension, I pay AVCs to mimimise paying the additional tax in the shit show that is the Scottish tax system - the higher tax rate kicks in before NI is reduced

Also worth considering requesting 80% FTE to avoid higher rate tax if you can afford it.