In the uk tax is 2o percent or 40 percent depending on how much you earn doesnt this mean people earn similar after tax ?

what is a good salary

2 Answers

Relevance
  • Maxi
    Lv 7
    2 months ago

    You pay 0% on earnings up to £12,500* for 2020-21. then you pay 20% on anything you earn between £12,501 and £50,000. you'll pay 40% Income Tax on earnings between £50,001 to £150,000. if you earn £150,001 and over you pay 45% tax.

  • 2 months ago

    Social benefits have to be paid for.  Income taxes, VAT, capital gains taxes, stamp duty, the list goes on and on.

    For the first £12,501 of income you pay no income tax

    For the next £12,501 to £50,000 you pay tax at 20%

    For the next £50,001 to £150,000 you pay tax at 40%

    In addition you will pay National Insurance.  For anyone earning more than £10,000 a year, 12% of your earnings up to £50,000 will be withheld with the rate dropping to 2% of your earnings over that amount.

    A good income in Northern Ireland would be poverty level in London.  Everything depends on where you live. 

Still have questions? Get answers by asking now.