The Salary Calculator

The VAT Calculator launched

I’m pleased to announce the launch of The Salary Calculator’s sister site, The VAT Calculator. The VAT Calculator allows you to either enter a price to which VAT should be added to give the total, or to enter the total price and calculate what the price was before VAT.

Yes – it’s two relatively simple calculations, but I hope it that some visitors will find it useful! Comments and suggestions are as ever welcome, either here at The Salary Calculator or email The VAT Calculator.

Take a look at The VAT Calculator.

Tags: HMRC, Income Tax, tax rates, value added tax, VAT, VAT Calculator

New, higher tax rate

From April 2010, new tax rates will take effect. Most of us won’t be affected by the changes, as they only affect those with annual income in excess of £100,000.

The first change is the creation of a new income tax band for taxable income above £150,000, which will be taxed at a rate of 50%. This will make a significant difference to anyone who does earn this much as they currently are paying only 40% on this income.

The second change is a reduction of the personal allowance of £1 for every £2 your income is over £100,000. Your personal allowance is the amount you are allowed to earn without paying tax – by reducing this allowance the government are able to take more tax off your hands. In fact, I have calculated that whereas currently for every extra £2 you earn over £100,000 you take home £1.20, those of you lucky enough to be in this pay bracket will be taking home only £0.80 of that £2 from April 2010.

The Salary Calculator will be updated with these new rates early in 2010 when the details of personal allowances and other thresholds for that tax year are made available.

More details are available on the HMRC website here (PDF).

Tags: 50% tax, April 2010, HMRC, income tax, Income Tax, Pay As You Earn, personal allowance, tax rates