Can you still pay less taxes with a 25000 pounds salary in the UK?

[Saint]

In UK, if you earn 25000 pounds/year, how much is the tax?

 

[jono]

I think the going basic rate is 22% for income tax, but you pay NI on top of that too :(

 

[Saint]

that's pretty scary

 

[jimmy p]

When you earn over £40k a year (I think) you pay super tax, which is around 40% on your pay BEFORE you receive it.

 

[jono]

When you earn over £40k a year (I think) you pay super tax, which is around 40% on your pay BEFORE you receive it.

That's right. Criminal :shy:

 

[MathematicalPhysicist]

that's pretty scary

are you planning to immigrate from Mars back to earth,uk?

 

[Zantra]

are you planning to immigrate from Mars back to earth,uk?

that's nothing. While the poor in the US pay only 15 percent or so income tax, the middle class are taxed the heaviest, at a rate of 25-30 percent on gross income, not to mention all the taxes on the products we buy (state tax on goods is between 4-8 % depending on what state you live in) so by the time you add everything in, you actually only end up seeing about half of any money you earn.

I'd love to have only 22%tax

 

[Saint]

I heard that for an expatriate from other countries who works in USA for the first 3 years, he/she is exempted from tax, is it true ?

 

[Kerrie]

also to note zantra, the tax that americans pay goes to certain things such as military, social security, schools, roads, civil services, however, in more socialist countries, don't they also get basic health and child care for what they are taxed?

 

[Andy]

Yea we do get free health care out of it, but we do hyave to pay for prescriptions. The National Health Service is in a pretty poor state mind you, I had to wait 3 hours with blood running down my arm in the waiting room on friday nite before a Nurse was free to see me, the Nurses where very nice though and made me feel very comfortable so i shouldn't moan too much. How long dya normally wait in other countries?

 

[Kerrie]

andy, in america, the health insurance "crisis" is getting to the point that the doctor/nurses will check your health insurance thoroughly to make sure you have coverage. in an emergency, you will be treated, however if you do not have the insurance, expect a bill that can put you into debt. my salary puts me in the middle class and i get taxed heavily, to the point of asking myself "is my career worth it?". i know many people who make so much less, but get more of their money.

 

[franznietzsche]

andy, in america, the health insurance "crisis" is getting to the point that the doctor/nurses will check your health insurance thoroughly to make sure you have coverage. in an emergency, you will be treated, however if you do not have the insurance, expect a bill that can put you into debt. my salary puts me in the middle class and i get taxed heavily, to the point of asking myself "is my career worth it?". i know many people who make so much less, but get more of their money.

Thats got to make you love our government.

 

[Saint]

in malaysia, we have many clinics, just walk in and get treatment.
we have government hospital, very cheap, just pay 2 ringgit (USD 0.5).
we do buy insurance for hospitalization.

 

[Moonbear]

I heard that for an expatriate from other countries who works in USA for the first 3 years, he/she is exempted from tax, is it true ?

I'm not 100% certain on how this works, but there is some sort of reciprocity agreement at least for people here on student or J1 (professional training, i.e., postdocs) visas that they don't pay taxes the first few years here, but I don't know if they still need to pay taxes back to their own countries during that time. I think the idea is they expect people on those visas to leave the country before they've had a chance to benefit from any of the programs the taxes are paying for. I'm pretty sure that as soon as you become a permanent resident, they start collecting taxes, no matter how short a time you've been in the country.

I was just happy with my most recent pay raise that I didn't get bumped into a new tax bracket. That happened the last several years that my take-home pay was only negligibly more after a substantial raise than before because the taxes kept increasing with the salary. Not only do I have to pay federal and state taxes, but I also work in a city that takes out city taxes, and they keep trying to raise the sales tax around here too! And I'm still wondering who the morons are that keep voting to increase property taxes! We pay enough, it just gets divided up among too many stupid pet projects.

 

[member 5645]

that's nothing. While the poor in the US pay only 15 percent or so income tax, the middle class are taxed the heaviest, at a rate of 25-30 percent on gross income, not to mention all the taxes on the products we buy (state tax on goods is between 4-8 % depending on what state you live in) so by the time you add everything in, you actually only end up seeing about half of any money you earn.

I'd love to have only 22%tax

Leave california - you guys have European style taxes! they are everywhere, and hidden all over!

Texas has no state income tax.
Clearing 65,000 a year, with proper deductions, leaves about 15% for my taxes.
Sure, maybe the tax RATE is higher originally, but doing your taxes properly, and putting the income in intelligent places will dramatically lower your pain.

 

[member 5645]

I'm not 100% certain on how this works, but there is some sort of reciprocity agreement at least for people here on student or J1 (professional training, i.e., postdocs) visas that they don't pay taxes the first few years here, but I don't know if they still need to pay taxes back to their own countries during that time. I think the idea is they expect people on those visas to leave the country before they've had a chance to benefit from any of the programs the taxes are paying for. I'm pretty sure that as soon as you become a permanent resident, they start collecting taxes, no matter how short a time you've been in the country.

I was just happy with my most recent pay raise that I didn't get bumped into a new tax bracket. That happened the last several years that my take-home pay was only negligibly more after a substantial raise than before because the taxes kept increasing with the salary. Not only do I have to pay federal and state taxes, but I also work in a city that takes out city taxes, and they keep trying to raise the sales tax around here too! And I'm still wondering who the morons are that keep voting to increase property taxes! We pay enough, it just gets divided up among too many stupid pet projects.

Being bumped into a another tax bracket is ALWAYS a good thing. Having some of the pie is better than none
Sorry to hear about your city taxes as well. Ewwwww - Glad to see that some people hate taxes as much as I do. I am just fortunate not to live somewhere with high rates. I only have to deal with the federal level and property taxes .

 

[member 5645]

i know many people who make so much less, but get more of their money.

No offense, but then you are doing something wrong. I'd beat my CPA if that happened to me.

 

[Kerrie]

No offense, but then you are doing something wrong. I'd beat my CPA if that happened to me.

phatmonkey, i am doing everything legally correct. i was referring to those on lower incomes but qualify for a lower tax rate. literally they do not receive more of their money, but on a percentage they do. this is common knowledge. once an individual makes over 30K annually (rough estimate) the rate jumps from about 15% to 28%. so technically, one who makes 28K can bring home more money then someone making 31K. you also have to consider the variables of dependents, exemptions and if you are itemizing too.

 

[jono]

This may be coming into force in the UK soon:

"Some commentators have suggested that a top rate of 60% should be introduced for earnings of over £100,000 ..."

(Guardian website)

 

[Njorl]

The US and the UK are two of the least taxed advanced industrial nations. All of Scandanavia, Finland, the Netherlands, and Germany pay much higher taxes, and even Japan has raised its taxes to slightly higher than US levels.

I couldn't find numbers for France, Italy and the rest of Europe, but I would be surprised if any of them were taxed at a lower rate than the US or UK.

I have no idea what China, India, the "East Asian Tigers" and the "Little Dragons" do for taxation.

South America (other than Venezuela) has low taxes. Do you really want to use South American countries as model economies?

Njorl

 

[Andy]

And what's wrong with the South American Economies?

 

[member 5645]

phatmonkey, i am doing everything legally correct. i was referring to those on lower incomes but qualify for a lower tax rate. literally they do not receive more of their money, but on a percentage they do. this is common knowledge. once an individual makes over 30K annually (rough estimate) the rate jumps from about 15% to 28%. so technically, one who makes 28K can bring home more money then someone making 31K. you also have to consider the variables of dependents, exemptions and if you are itemizing too.

NO THEY CAN'T!
Tax levels are bracketed.
When you are taxed X Percent on the first amount , Y percent on the next bracket, and so forth.
A person who makes 300,000 a year and is in the ~40% tax bracket does NOT pay 40% on all of their income, only the amount in the highest bracket.

 

[member 5645]

And what's wrong with the South American Economies?

Google "Argentina + IMF"

 

[member 5645]

This may be coming into force in the UK soon:

"Some commentators have suggested that a top rate of 60% should be introduced for earnings of over £100,000 ..."

(Guardian website)

buwahaha! Man, I love the British, but that is so sad :(

 

[Kerrie]

NO THEY CAN'T!
Tax levels are bracketed.
When you are taxed X Percent on the first amount , Y percent on the next bracket, and so forth.
A person who makes 300,000 a year and is in the ~40% tax bracket does NOT pay 40% on all of their income, only the amount in the highest bracket.

um, i don't want to argue with you. i am one of those middle class people who get taxed the hardest, so i can speak from experience. and yes my CPA has done everything correctly.

 

[Saint]

This may be coming into force in the UK soon:

"Some commentators have suggested that a top rate of 60% should be introduced for earnings of over £100,000 ..."

(Guardian website)

this is crazy, sucking our bloods?

 

[franznietzsche]

NO THEY CAN'T!
Tax levels are bracketed.
When you are taxed X Percent on the first amount , Y percent on the next bracket, and so forth.
A person who makes 300,000 a year and is in the ~40% tax bracket does NOT pay 40% on all of their income, only the amount in the highest bracket.

If the person making less money gets more in deductions it is completely possible.