Tax change

[cryrst]

Rates and thresholds for employers 2025 to 2026

Use these rates and thresholds when you operate your payroll or provide expenses and benefits to your employees.

www.gov.uk

I just found this change.
WTF I didn’t even realise they had changed it. Will cost me about 3-4 k to spend on low life c**** and vanity s***.

 

[cryrst]

So Sunak was correct about the 2 k
A bit out but we were warned for sure.

 

[DanH]

Rates and thresholds for employers 2025 to 2026

Use these rates and thresholds when you operate your payroll or provide expenses and benefits to your employees.

www.gov.uk

I just found this change.
WTF I didn’t even realise they had changed it. Will cost me about 3-4 k to spend on low life c**** and vanity s***.

What change are you talking about exactly?

 

[Foxy82]

Isn't this the employer's tax rates?

 

[cryrst]

What change are you talking about exactly?

The 40% tax rate has dropped from 49k odd under the tories to 37k odd under your mate 2TK.
Silently snuck in there so every grand over 37 k odd earned will cost you another £150. Aside of the NI increase.
Nice one labour voters. Sure saw that one in the manifesto. NOT!

 

[cryrst]

What change are you talking about exactly?

Here is last years.

Income Tax rates and Personal Allowances

Personal Allowance, Income Tax rates, bands and thresholds.

www.gov.uk

Am I wrong , in case I read it wrong.

 

[eaglesdare]

Everyone was warned that labour would raise taxes 🤷🏻‍♂️ it's not a big surprise.

 

[DanH]

The 40% tax rate has dropped from 49k odd under the tories to 37k odd under your mate 2TK.
Silently snuck in there so every grand over 37 k odd earned will cost you another £150. Aside of the NI increase.
Nice one labour voters. Sure saw that one in the manifesto. NOT!

You’re ignoring the personal allowance. The rates and thresholds have all stayed the same.

The only thing changing with income taxes/NIC from April is the employer rate going up to 15% (from 13.8%) and threshold businesses have to start paying it go down to £5k per employee (from £9,100).

 

[cryrst]

You’re ignoring the personal allowance. The rates and thresholds have all stayed the same.

The only thing changing with income taxes/NIC from April is the employer rate going up to 15% (from 13.8%) and threshold businesses have to start paying it go down to £5k per employee (from £9,100).

So the PAYE tax threshold for 40% wasn’t 50 k in 24-25
And now 37k in 25-26.
That’s what I see in the two years I posted.
Did you scroll down that far?

 

[cryrst]

Danh. Out of interest
Say I earn 60 k a year
What tax would I pay last year to next year?
Serious as this is your trade I think.

 

[Runningman]

So the PAYE tax threshold for 40% wasn’t 50 k in 24-25
And now 37k in 25-26.
That’s what I see in the two years I posted.
Did you scroll down that far?

I think it’s the way it’s laid out. In the blurb it refers to the tax free allowance but doesn’t say how much it is…
But £37,700 + £12570 =£50,270.00, which is the same as the current tax year.

By no means a 2TK supporter but I think it’s in the presentation.
Don’t worry though the thieving Bxstards will get their £2000 (and more) through
a) weekly shopping bills.
b) council tax
c) a pint in the pub
d) the air that you breathe

 

[cryrst]

I think it’s the way it’s laid out. In the blurb it refers to the tax free allowance but doesn’t say how much it is…
But £37,700 + £12570 =£50,270.00, which is the same as the current tax year.

By no means a 2TK supporter but I think it’s in the presentation.
Don’t worry though the thieving Bxstards will get their £2000 (and more) through
a) weekly shopping bills.
b) council tax
c) a pint in the pub
d) the air that you breathe

Ahh thankyou. It makes sense now.
I will put my banner back in the loft 😂

 

[DanH]

Danh. Out of interest
Say I earn 60 k a year
What tax would I pay last year to next year?
Serious as this is your trade I think.

You will pay exactly the same, but your employer will pay more in NICs.

In real terms you are worse off, however. Leaving the thresholds unchanged by inflation means your post-tax income buys you less. Also means your effective tax rate (overall tax paid on gross income) will likely go up as any pay rise you would have got would be taxed at your marginal rate (40% if your earn £60k).

Unfortunately that ‘trick’ isn’t a new thing for this year and Labour have just rolled it over from the previous government!

 

[DanH]

Ahh thankyou. It makes sense now.
I will put my banner back in the loft 😂

It’s good that people understand these things! There was a worrying survey that a bigger chunk of the public than you’d think thought that once you cross into the 40% bracket you start paying that rate on everything rather than just what you earn over it!

 

[georgenorman]

Giving more tax to governments is like giving whisky to an alcoholic. People should support any party that is pledged to reduce government. That's why Brexit was so necessary and beneficial - getting rid of a huge swathe of undemocratic over-government, waste, inefficiency and bureaucracy.

 

[NMPalace]

You will pay exactly the same, but your employer will pay more in NICs.

In real terms you are worse off, however. Leaving the thresholds unchanged by inflation means your post-tax income buys you less. Also means your effective tax rate (overall tax paid on gross income) will likely go up as any pay rise you would have got would be taxed at your marginal rate (40% if your earn £60k).

Unfortunately that ‘trick’ isn’t a new thing for this year and Labour have just rolled it over from the previous government!

Yep, essentially an employee pays exactly the same as last year (but freezing thresholds, as has been done for the last few years, means we all pay slightly more).

Employers pay a little more due to the NI change for employers (the NI for employees was reduced to 8% last year and this remains).

I suppose the big change is the increase to minimum wages levels - see below. Surely this is a good idea is it not?? I've noticed the companies who have whinged the most about the budget are those paying the lowest wages - retail, hospitality, care etc. Arguably they've been massively underpaying staff for years.

Current rates​

These rates are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year.

£11.44	£8.60	£6.40	£6.40
£12.21	£10.00	£7.55	£7.55

 

[Badger11]

Giving more tax to governments is like giving whisky to an alcoholic. People should support any party that is pledged to reduce government. That's why Brexit was so necessary and beneficial - getting rid of a huge swathe of undemocratic over-government, waste, inefficiency and bureaucracy.

Unfortunately they didn't do that. We still employ thousands more civil servants than before COVID. And that doesn't include the many more thousands indirectly employed in NGO's that suck on the taxpayer teet.

 

[DanH]

Unfortunately they didn't do that. We still employ thousands more civil servants than before COVID. And that doesn't include the many more thousands indirectly employed in NGO's that suck on the taxpayer teet.

Ask business owners importing and exporting into the EU, or people travelling in and out for work purposes whether there is more or less bureaucracy, cost and waste too.

Even Clarkson has turned: Jeremy Clarkson: Brexit makes me want to sit in a gutter and weep

 

[Badger11]

Bloated public sector is damaging economy, warns Andrew Bailey

Bank of England halves GDP forecast in blow to the Chancellor’s growth agenda

www.telegraph.co.uk

 

[Nutmegyeti]

Yep, essentially an employee pays exactly the same as last year (but freezing thresholds, as has been done for the last few years, means we all pay slightly more).

Employers pay a little more due to the NI change for employers (the NI for employees was reduced to 8% last year and this remains).

I suppose the big change is the increase to minimum wages levels - see below. Surely this is a good idea is it not?? I've noticed the companies who have whinged the most about the budget are those paying the lowest wages - retail, hospitality, care etc. Arguably they've been massively underpaying staff for years.

Current rates​

These rates are for the National Living Wage (for those aged 21 and over) and the National Minimum Wage (for those of at least school leaving age). The rates change on 1 April every year.

£11.44	£8.60	£6.40	£6.40
£12.21	£10.00	£7.55	£7.55

Except it isn't a little more

An 18 year old FT worker on minimum wage will now cost:

£19,500.00 Gross

£2,175.00 Ers NI

TOTAL = £21,675.00


A 21 year + FT worker on minimum wage will now cost:

£23,809.50 Gross

£2,8,21.43 Ers NI

£527.09 Ers Pension

TOTAL = £27,158.01


For an 18 year old they will see an increase of £2,730 to their gross pay. The employer will see a increase of £3,846.54 to their cost.

For a 21 year + FT worker, FT worker they will see an increase of £1,501.50 to their gross pay. The employer will see a increase of £2,545.27 to their cost.

The Er NI rise for an average FT worker over the age of 21 will be £998.72

Now imagine you run a cafe or such and you employ 1/2 people and turnover £85k. Now to stand still you have to get your turnover over £90k - which means VAT registration. If your customers are not VAT registered then you have to suck it up - or put your prices up by 20%.

Its one of the singularly most stupid ideas to "boost growth" anyone has ever had.

And it's unfair to call her "Rachel from Accounts". No accountant would have been that stupid.