Payscale after tax
Thread Starter
Joined: Nov 2006
Posts: 33
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From: France
Payscale after tax
Hello, i'm french, so i'm pretty unusual with the UK taxes...
So could you tell me how to know the final pay after tax ??? Is it a percentage or a formula, or something else?
Thanks !
So could you tell me how to know the final pay after tax ??? Is it a percentage or a formula, or something else?
Thanks !
ThRedBearOne
Joined: Jun 2005
Posts: 602
Likes: 0
From: Where my heart is.
Your pay = 100%
Taxman's take = 33%
Your take = 66%
Until you reach the higher tax bracket ... and then the taxman's take = more for that element above the normal tax bracket
Easy really!!!!!
Taxman's take = 33%
Your take = 66%
Until you reach the higher tax bracket ... and then the taxman's take = more for that element above the normal tax bracket
Easy really!!!!!
Joined: Aug 1999
Posts: 342
Likes: 0
From: uk
Thanks!
Joined: Nov 2003
Posts: 264
Likes: 0
From: UK
Taxable Bands
The Chancellor announces the taxable bands and the rates of tax at the Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Budget takes place in March.
Taxable Bands table Taxable Bands Allowances
2006-07 (£)
2007-08 (£)
Personal allowance
5,035
5,225
Starting rate 10%
0 - 2,150
0 - 2,230
Basic rate 22%
2,151 - 33,300
2,231 - 34,600
Higher rate 40%
over 33,300
over 34,600
The Chancellor announces the taxable bands and the rates of tax at the Budget Report which precedes the start of the tax year to which they relate. Generally speaking, Budget takes place in March.
Taxable Bands table Taxable Bands Allowances
2006-07 (£)
2007-08 (£)
Personal allowance
5,035
5,225
Starting rate 10%
0 - 2,150
0 - 2,230
Basic rate 22%
2,151 - 33,300
2,231 - 34,600
Higher rate 40%
over 33,300
over 34,600
Basically you don't pay tax on the first £5000, 10% on the next £2000, 22% of the next £3000 and 40% of everything above that
You also have to pay National Insurance - which is basically another form of income tax and is a few percent.
(The Govt haven't updated the site -in the last budget the chancellor abolished the 10% rate, dropped the middle rate to 20% and changed the National insurance rates (which are pretty complicated) - bottom line is pretty similar to the above
And the rates on PPJN don't take tax into account
Joined: Mar 2007
Posts: 115
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From: Small dot in the Caribbean
Wow, 33%. Should be illegal to take that much. A 100,000.00 USD/GBP a year salary becomes 66,000.00 a year. (Basic calculations, I imagine other things may factor in?) Sheesh. No income tax here and I hope it lasts.Farfadet, the website reads:
Disclaimer: The entries on this site are provided by voluntary contributers. Neither the Pilot Jobs Network nor its site administrators can be held responsible for any entries herein. We rely on the honesty and integrity of our contributers. By using this website you are agreeing to these terms.
Why do the rates change yearly like that? Is it based on the proposed needs of the country?
Joined: Dec 1999
Posts: 1,606
Likes: 0
From: UK
It's not so much the rates that change every year (although they have this coming year in a rare simplification measure by Gordon) - it is usually that the rate subject to tax rises each year so as to counter the effect of inflation (or less than the effect if the government has a funding shortfall!)
Everything in the UK is conventionally quoted pre-tax.
A tax accountant (I am not tax) told me over a drink that the UK is actually quite lax in the tax rates - though shocked for a short while, my colleagues seconded the New York have discovered that although federal taxes are OK, state taxes on top of those can make overall tax shockingly high...!
Everything in the UK is conventionally quoted pre-tax.
A tax accountant (I am not tax) told me over a drink that the UK is actually quite lax in the tax rates - though shocked for a short while, my colleagues seconded the New York have discovered that although federal taxes are OK, state taxes on top of those can make overall tax shockingly high...!
Joined: Jan 2007
Posts: 24
Likes: 0
From: Europe
The tax situation in the UK isn`t very bad,take a look at middle Europe (Germany,Poland,Hungary,Austria...).The average taxes are 52%.
This means we work mostly for the taxes.
The unbelievable thing is that the more you earn the more taxes you have to pay.Especially pilots are often disadvantages because we have often have to pay taxes in the country we work and also in the country we live.
....a really sad situation nowadays!!!
This means we work mostly for the taxes.
The unbelievable thing is that the more you earn the more taxes you have to pay.Especially pilots are often disadvantages because we have often have to pay taxes in the country we work and also in the country we live.
....a really sad situation nowadays!!!
Joined: Nov 2004
Posts: 272
Likes: 0
From: Ireland
"Especially pilots are often disadvantages because we have often have to pay taxes in the country we work and also in the country we live."
Eh, I don't think so!! Unless you're talking about double taxation treaties, which means you pay tax where you work, and then use this to offset against what you owe where you live. It's also a fact that in some countries, pilots get favourable tax breaks from the authorities, so much of their salary comes from allowances with no or lesser amounts of tax. I don't know any pilots that pay any more tax than they have to, and I know some who don't pay what they should.
Farfadet, the wages are quoted gross before tax, because your net tax in the UK depends on your family circumstances and tax allowances.
Eh, I don't think so!! Unless you're talking about double taxation treaties, which means you pay tax where you work, and then use this to offset against what you owe where you live. It's also a fact that in some countries, pilots get favourable tax breaks from the authorities, so much of their salary comes from allowances with no or lesser amounts of tax. I don't know any pilots that pay any more tax than they have to, and I know some who don't pay what they should.
Farfadet, the wages are quoted gross before tax, because your net tax in the UK depends on your family circumstances and tax allowances.
Joined: Apr 2007
Posts: 28
Likes: 0
From: Felpham West Sussex
UK Tax restriction
Coming to stay or simply visit for working flights whilst living abroad?
An individual Not Resident and Not Ordinarily Resident for UK tax purposes will have a potential UK tax liability in respect of UK Income and remuneration in respect of UK duties as an employee.
(nb Subject of potential Capital Gains tax should not be overlooked but I am ignoring it for the purpose of restricting length of this response).
So will you continue to reside abroad within visit limitations perhaps as a French tax resident working for a UK based company?
If so, you could find yourself only having to report say 5-10% of salary depending on actual rosters for UK tax purposes and still claiming full UK tax free allowances to offset.
Understand that UK/ French DTA hands prime taxing right to UK when working for UK based company and French still interpret DTA from their side as not to tax difference, although that has been subject to potential review for some while now and latest French position best checked out with French tax advisor.
If you become regarded as Resident and Ordinarily for UK tax purposes then full UK taxation on employment income for duties of employment exercised partly in and out of UK.
Non Domicile claim unlikely to help mitigate tax on such employment income.
Hope that this is of some additional help.
An individual Not Resident and Not Ordinarily Resident for UK tax purposes will have a potential UK tax liability in respect of UK Income and remuneration in respect of UK duties as an employee.
(nb Subject of potential Capital Gains tax should not be overlooked but I am ignoring it for the purpose of restricting length of this response).
So will you continue to reside abroad within visit limitations perhaps as a French tax resident working for a UK based company?
If so, you could find yourself only having to report say 5-10% of salary depending on actual rosters for UK tax purposes and still claiming full UK tax free allowances to offset.
Understand that UK/ French DTA hands prime taxing right to UK when working for UK based company and French still interpret DTA from their side as not to tax difference, although that has been subject to potential review for some while now and latest French position best checked out with French tax advisor.
If you become regarded as Resident and Ordinarily for UK tax purposes then full UK taxation on employment income for duties of employment exercised partly in and out of UK.
Non Domicile claim unlikely to help mitigate tax on such employment income.
Hope that this is of some additional help.
