Someone sent me this info today... so I thought I'd share it and see if anyone had any comments/thoughts...I can't swear it is correct and corrections and additions are of course welcome.
My thought is that we are being taxed to death, and that UK tax rates are WAY too high... I don't know how others feel?
PAYE tax rates, thresholds and codes Figures to use 2010-11
PAYE tax threshold £125 per week, £540 per month, £6,475 per year
Basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £37,400
Higher tax rate 40% on annual earnings from £37,401 to £150,000
Additional tax rate 50% on annual earnings above £150,000
If you're employed you pay Class 1 National Insurance contributions. The rates are:
if you earn more than £110 a week and up to £844 a week, you pay 11 per cent of the amount you earn between £110 and £844 (£43,888 per year)
if you earn more than £844 a week, you also pay an extra 1 per cent of all your earnings over £844 (£43,888 per year).
You pay a lower rate if you're a member of your employer's contracted-out pension scheme.
So someone on 40% tax will pay 51% tax/NI between £37,400 and £43,888 and 41% tax/NI between £43,888 and £150,000.
If they earn over £150,000 they will pay 51% tax/NI on earnings over £150,000.
That bit between £37,400 and £43,888 at 51% seems a bit odd and unfair.
Corporation Tax Main rate is 28% reducing to 27% next year.
Up to £300,000 profit rate is 21% now, reducing to 20% next year. Seems there is a sliding scale of rises to 28% between £300,000 and £1.5m
VAT is of course 20% from January.