.While your effective rate of tax determines your take-home pay, it is your marginal rate you need to consider when thinking about how a a pay rise will benefit you — and this could be much higher.If you earn £40,000, you will pay income tax of up to 20 per cent and national insurance of 12 per cent. But because £12,570 of your income is){kind=link}
Workers considering a new job or whether to push for a pay rise need to do their sums as earning just £1 more could leave some people out of pocket.
Quirks in the UK tax system mean some people are facing marginal tax rates of 68 per cent or more, according to the research firm Tax Policy Associates (TPA).
While your effective rate of tax determines your take-home pay, it is your marginal rate you need to consider when thinking about how a a pay rise will benefit you – and this could be much higher.
If you earn £40,000, you will pay income tax of up to 20 per cent and national insurance of 12 per cent. But because £12,570 of your income is
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