Big barrels7 Sep 2025 10:27
How Basic is Basic???
BASIC!!! RATE TAX?!!
For every £100 that an employer, in the small business “private sector”, has available to pay to their employees…this is how it disappears BEFORE it gets into the pocket of that employee on Basic Rate Income Tax and Nat. Insurance.
£100.00 less 15% Emp’er NI = £86.95
£ 86.95 less 3% pension cost = £84.42
£84.42 less 5% pension cost = £80.40
£ 80.40 less 20% Tax AND 8% NI = £62.81
£ 62.81 Net from £100 of employer wage costs
Therefore, EVEN as a Basic Rate Taxpayer for every extra £100 the employer might allocate to pay ann individual only £62.81 gets to the employee.
Therefore 37.19% of any extra money available to pay a basic rate employee doesn’t get into that employee’s pocket!!!
Some will say that a pension is building up - but governments apparently “rob” private sector pensions to pay “unfunded”, public sector, pensions!?
How Basic is Basic???
Not Very Basic at ALL???