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# Help Me Understand How Tax is Calculated watch

1. If for example my wage is £18,000, does that mean 20% goes towards paying tax?

Example:

£18,000 before tax.

£3600 for tax.

£14,400 personal allowance.

Thank you.
2. (Original post by lalalalalalamember)
If for example my wage is £18,000, does that mean 20% goes towards paying tax?

Example:

£18,000 before tax.

£3600 for tax.

£14,400 personal allowance.

Thank you.
The current personal allowance is £11500 - this is what you can earn before paying tax. If you earn £18000 you pay tax on:

18000-11500= 6500 at 20% = £1300

Different rates apply once you reach the higher rate threshold
3. (Original post by lalalalalalamember)
If for example my wage is £18,000, does that mean 20% goes towards paying tax?

Example:

£18,000 before tax.

£3600 for tax.

£14,400 personal allowance.

Thank you.
You can work out how much tax you'll pay using this calculator: https://listentotaxman.com/
4. (Original post by marple)
The current personal allowance is £11500 - this is what you can earn before paying tax. If you earn £18000 you pay tax on:

18000-11500= 6500 at 20% = £1300

Different rates apply once you reach the higher rate threshold
This is how its worked out.

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