Taxable Income - Higher Rate - Scotland

[irc]

I need to calculate my taxable income as I may go slightly into the SCottish higher rate band this year - £43430.
I need to avoid this because if I earned £1000 over it I would be left with only £125.

HIgher rate tax £410
Nat Ins £120
Superann £95
Loss of marriage
tax allowance £250

Total £875

Two questions. I have a part time NHS job paying into the NHS pension scheme. I pay a flat 21% tax as my tax code is used elsewhere. Is my taxable pay from this job after pension contributions. IE earn £23000 - 9.5% (£2185) = £20895 taxable pay?


Secondly. Assuming my taxable pay is £44,430. £1000 into the higher rate band will a £1000 payment into a private pension I have be enough to use up my 40% tax relief and keep me a basic rate income taxpayer and keep my marriage tax allowance?

[orangesrule]

National insurance drops to 2% when you breach the higher tax bracket.

Lower tax bracket plus ni = 32%
Higher tax bracket plus ni = 42%

[AndyAudi]

orangesrule said:

National insurance drops to 2% when you breach the higher tax bracket.

Lower tax bracket plus ni = 32%
Higher tax bracket plus ni = 42%

Not in Scotland it doesn’t - one of those anomalys that creates a 41% Tax plus 12% NI for a bit

[irc]

orangesrule said:

National insurance drops to 2% when you breach the higher tax bracket.

Lower tax bracket plus ni = 32%
Higher tax bracket plus ni = 42%

Wrong. NI drops to 2% when your weekly pay reaches £962. Roughly £50k

So Scottish taxpayers pay 41% tax and 12% NI between £43430 and £50k.

https://www.moneyadviceservice.org.uk/en/articles/...

Edit

Thanks a bunch SNP. Yet another reason not to vote for them.

[AndyAudi]

Someone more knowledgeable will be along but think about some other things too

You mention NHS, does you profession give a tax free allowance for laundry/uniforms etc

Any professional subscriptions

Any charity contributions made check gift aid receipts

[WindyCommon]

To be fair, this isn’t a question/problem that occurs frequently.

[irc]

Thanks for replies.

I suspect though the marriage tax thing may not apply to many there are plenty Scots earning between 43430 and 50k who don't realise they are paying 53% tax/NI on that slice of income. Add in superan any they are taking home around a third of the top line.

At work tonight I got my January pay slip Looking forward if I refuse overtime in February I should just sneak in below the higher rate point.

Will definitely hit it next year though as April to Sept earnings were a bit lower before I started this job.

[JulianPH]

irc said:

Thanks for replies.

I suspect though the marriage tax thing may not apply to many there are plenty Scots earning between 43430 and 50k who don't realise they are paying 53% tax/NI on that slice of income. Add in superan any they are taking home around a third of the top line.

At work tonight I got my January pay slip Looking forward if I refuse overtime in February I should just sneak in below the higher rate point.

Will definitely hit it next year though as April to Sept earnings were a bit lower before I started this job.

Add employers NI of 13.8% to that band and the total tax take rises to 66.8%.

[oop north]

You get tax relief on the superannuation. Not a huge help to you I know but it’s something!

[pete_esp]

Jasey_ said:

Funnily enough I'm about to negotiate my pay down so I don't have to pay the SNP high rate tax - going to reduce pay and take more Holidays !

fk the s !

I'm done paying tax on everything !

I've upped my pension contributions with the same sentiment.

And I'll be buying all of my booze from across the border as a matter of principle too.

[JulianPH]

Jasey_ said:

Funnily enough I'm about to negotiate my pay down so I don't have to pay the SNP high rate tax - going to reduce pay and take more Holidays !

fk the s !

I'm done paying tax on everything !

Good on you mate!

[JulianPH]

Jasey_ said:

JulianPH said:

Jasey_ said:

Funnily enough I'm about to negotiate my pay down so I don't have to pay the SNP high rate tax - going to reduce pay and take more Holidays !

fk the s !

I'm done paying tax on everything !

Good on you mate!

I was always planning on changing things - The death of my Mum last week has heightened my desire to stop getting fked over by the "system".

Must get back to looking at transferring my SIPP to those dodgers at IM

st mate, so sorry to hear of this and my sincere condolences.

If I can be of any assistance to you and your family when it comes to sorting any finances out then just give me a shout (on the house, obviously).

[Electronicpants]

JulianPH said:

irc said:

Thanks for replies.

I suspect though the marriage tax thing may not apply to many there are plenty Scots earning between 43430 and 50k who don't realise they are paying 53% tax/NI on that slice of income. Add in superan any they are taking home around a third of the top line.

At work tonight I got my January pay slip Looking forward if I refuse overtime in February I should just sneak in below the higher rate point.

Will definitely hit it next year though as April to Sept earnings were a bit lower before I started this job.

Add employers NI of 13.8% to that band and the total tax take rises to 66.8%.

And if you do even better at your job you start to see your child benefit sailing away, lovely. What you complaining about you rich tosser, food banks, child poverty and whatnot, suck it up....

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation. ”(Lenin)

Happy Friday everyone.

[JulianPH]

Jasey_ said:

Cheers Julian,

Just about on top of everything but If I get stuck on anything I'll maybe drop you a PM.

Please do if you need anything.

Obviously it will be the last thing on your mind right now, but do let me know if you would like IM British GT race tickets.

Wouldn't trust the flash buggers with your SIPP though!

Once again, I am truly sorry to hear your news.