The Tax on Your Salary
On January 9th 1799 the Prime Minister, William Pitt, introduced income tax to pay for the Napoleonic war at the swingeing rate of 0.83% for people earning £60 or more. How times have changed.
The 2009 budget headlines were largely around increased government borrowing, small-business tax holidays, other macroeconomic gobbledegook and the environment. Mr. Darling didn't forget about us regular earners though and the key income-related measures in the 2009 budget were:
- From April 2010 a new 50% tax rate has been added for earnings greater than £150,000!
- Mr. Darling also reduced the reliefs on pensions contributions for higher earners.
- As is traditional, the drinkers and smokers among us will be worse off than last year.
This calculator is based on the income tax rates and rules that came into force in April 2009.
Just key in your gross yearly income (that's the amount before tax), tick the other boxes if applicable and we'll calculate how much of your salary ends up in your pocket.
Disclaimer: We advise you to consult a specialist before making any major financial decisions.