I know that the current tax-free rate is around £7,500 but we are currently looking at our options for next year (which may mean my wife adding to her part-time, term-time hours). The thing is, if she did that, it would push her over the current rate. I seem to recall the Government were going to change it for next year but can't find anything about it online - so does anyone know what it is increasing to? (For some reason I had circa. £10k in my head).
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Income tax rates for next year
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Posted 6 months ago #
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It's moving to about £10k over the next few years, I believe.
Posted 6 months ago # -
Yes, but all the price hikes, VAT rises etc mean you're probably no better off. Clever aren't they, these politicians. Also can you just set up your own company, and then pay yourself a dividend instead of wages which are taxable. Or did I hear wrong?
Posted 6 months ago # -
Agreed MTB but we are looking at our options simply because it may be pointless my wife adding (slightly) to her hours because as soon as she has to pay tax it means she will be working more hours for very little extra reward (especially when there will probably be a reduction in Working Tax Credit too if she is earning more).
It will probably make my head hurt trying to work out our best option...
Posted 6 months ago # -
pretty good site
Posted 6 months ago # -
Ahh that should help a bit - thanks for that.
Posted 6 months ago # -
£8105 for 2012/13 IIRC
Posted 6 months ago # -
It's not like once you're over the limit you pay 20% on everything, though. Is that 20% of everything over the threshold really too much to cope with?
Posted 6 months ago # -
It's not like once you're over the limit you pay 20% on everything, though. Is that 20% of everything over the threshold really too much to cope with?
Well I know that - but it isn't a matter of *coping* but it just seems silly to work additional hours (which mean putting our girls into childcare for additional time/cost) if the reward is only meagre (my wife only earns LEA support workers wages so not exactly coining it in).Posted 6 months ago # -
Cheers Uplink - that is useful to know.
Posted 6 months ago # -
Ah, I suppose. Didn't consider childcare costs.
Posted 6 months ago # -
Yeah - we aren't left with a great deal from my wife's earnings at the moment, never mind with additional out costs and 20% tax on top too.
Posted 6 months ago #
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