Sort of - if you earnt 13k then you would be taxed down to 10k.
If you earnt 12750, then you aren't taxed, but assuming rent at 800PCM you would have £3000 to live off for the year, which once you factor in heating bills if you use it, travel, council tax, London prices of goods, and so on, is not very much.
Sort of - if you earnt 13k then you would be taxed down to 10k.
If you earned 13k , then you'd only pay tax on the £250 you've earned above the personal allowance no?
As far as I understand it, it's not that you don't pay taxes so long as you make less than the personal allowance, it's that the first £12750 you make is untaxed regardless of how much you make until you make more than £100k.
What I mean is that you are not taxed on the first £12750 you earn if you are working minimum wage full time, you only pay it on the roughly £6000 you've made after that, which works out to only about £1700 in income tax and national insurance.
So in the example above, they'd have more income than suggested.
Do you pay income tax on amounts lower than the personal allowance?
No, but the personal allowance is 12750, and with that amount of money you would struggle to rent
Still an extra £2400 spread across the year though no? Compared to taking 20% from the total income.
Sort of - if you earnt 13k then you would be taxed down to 10k.
If you earnt 12750, then you aren't taxed, but assuming rent at 800PCM you would have £3000 to live off for the year, which once you factor in heating bills if you use it, travel, council tax, London prices of goods, and so on, is not very much.
If you earned 13k , then you'd only pay tax on the £250 you've earned above the personal allowance no?
As far as I understand it, it's not that you don't pay taxes so long as you make less than the personal allowance, it's that the first £12750 you make is untaxed regardless of how much you make until you make more than £100k.
Oh shit yeah
So true
Yes, but you wouldn't be able to rent anywhere for that. If rent was cheaper, then it would be viable to live off 12750 for sure.
What I mean is that you are not taxed on the first £12750 you earn if you are working minimum wage full time, you only pay it on the roughly £6000 you've made after that, which works out to only about £1700 in income tax and national insurance.
So in the example above, they'd have more income than suggested.
You are very correct
Is that better than being a regular level of correct?