[villaaston1]

Are you sure your tax rate is 55%? You’d have to be earning £500k+ and paying off a Plan 4 student loan for that to be the case.

[intunderflow]

Part higher, part additional rate + 9% student loan repayment + national insurance contributions

I'm nuking the student loan as fast as possible, especially with the interest rates being near extortion, so hopefully that will mean I get more take home in the future

[mrcartmeneses]

Ah so you’re choosing to repay a loan faster and calling that tax. Be honest please

[intunderflow]

I'm not counting my voluntary repayments in that figure.

45% Income Tax + 9% Student Loan Repayment (mandatory) + 3.25% National Insurance Contributions

Gives 57.25%, but this is off because:

- Student loan repayments start somewhere above 20k, which decreases it

- National insurance runs at 10.25% before going down above a certain income, which increases it

- Higher rate and basic rate apply to some income (but no tax free allowance), which decreases it

Hence to a round(ish) number roughly 55%

[martingoodson]

This is highly misleading. The 45% rate only applies to the portion of salary over £150k. Someone earning £200k will pay 75k in income tax. That’s 37.5% overall.

[new299]

Honestly I think these kinds of calculations should also include all the VAT you pay out over the course of a year, which I imagine is also reasonably substantial.

Also, you're not paying 45% income tax on the total amount right (that's the highest bracket in the UK).

[blitzar]

Impressive you can earn >200k and yet be unable to do basic maths.

[Scoundreller]

You haven’t included VAT in your effective tax rate.