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 2010 budget headlines were largely around the Alastair Darling's eyebrows, Nick Clegg's poor performance (yes, you heard that right) and the small matter of the budget deficit. Mr. Darling froze allowances and NI again, but get ready for changes unless the next Government steps in. In terms of income tax:
- The new 50% tax rate has been added for earnings greater than £150,000!
- Also, Mr and Mrs banker, if you earn more than £100,000 the revenoo will start eating away at your tax-free stuff
- As is traditional, the drinkers and smokers among us will be worse off than last year, although the hoo-ha was all about cider for a change.
This calculator is based on the income tax rates and rules that came into force in April 2010.
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.