This is a bit random but it's been bugging me for a while and as an economist I find it embarrassing. I just realised the other day that I'm not a 100% sure how income tax in the UK works.
For example, if you're earning 40k a year, ~£7000 of it is non-taxable (or personal allowance). Leaving you with £33000 to be taxed. But then does this mean that the amount of income tax you pay is 40% of 33k?
Looks like its too much!
Nope, as far as I'm aware (technically I should I know as I got taxed like a bitch last year and didn't really check my payslips) there are different tax brackets so I'm pretty sure a certain amount of the next 20k or something is taxed at 20/25% or something, and then anything else from 27k onwards taxed at a different amount. It's cumulative if that makes any sense...?
I may be completely wrong though - you may have to ask someone in the real world!
Considering I will be getting my first car at some point over the summer and it will be the first time I have ever been near an insurance policy, how will I get insurance for under £3000, preferably £2000
What car should I look to get for a first car when I pass I will probably want to spend between £1000-£2000 on the car and not really above £3000 for the insurance.
I probably won't be able to go on to anyone else's insurance as I don't live with parents etc.
Go for as low and engine and cheap a car as possible, fuel is a ****ing bitch. Unless you're new job will make you loaded tbh.
I can afford a car up to about £2000 but I really don't want to pay more than £3000 for insurance. After just checking comparison sites I am yet to find any generic car than I can get the insurance low enough for