why is income worked out before tax is taken off?

[Inge]

OH earned £16k this year but really got just under £11k, so alot was taken off in tax. Iv always wondered why tax credits/benefits take earnings before tax even though you only get a much lower amount. 5k seems a big drop these days and I wish we did have 16k take home Might seem a dumb question but Iv always wondered as you dont actually take that higher amount home as its taxed and reduced

 

[highhopes19]

I've often wondered this and how it's not fare or atleast doesn't feel fare

OH earns just over £1000 a month but after tax just about £850 is brought home . Makes me wanna cry xx

 

[Inge]

thank god it wasnt just me wondering this Its probably because thats how much your employer pays to you im not a maths/clever person at all. OH earns about £1100 a month afetr tax so wer not bad but cost of living is mad these days so every penny counts.

 

[hayz_baby]

Mayb coz they can work.out how much tax was taken.. Idk jus a guess!

 

[Laura2919]

I think it is fair, we don't have a right to claim money off the Government we are given it as a help. They aren't going to let you have all your tax back or where would we be financially.

Think how many people claim tax credits? Now if every one of those who worked paid tax on £1000 and then the tax man took £200 leaving £800 and you was claiming tax credits on £800 you'd more than likely get your tax back each month and more. They are covering their backs because financially the amount people claim would be much much more than they claim now. It's fair because the tax credit money isn't really our money anyway.

 

[suzib76]

i dont think it makes a blind bit of difference whether they take your gross or net salary into account - if they worked on the after tax figure they would just lower the amounts of tax credits we got accordingly anyway

i think the reason they work on gross is to avoid any confusion people have with net, because people have other deductions from their earnings which wouldnt come into account

 

[Hayley90]

Its because not everyone is on the same tax code, some people are in arrears, some people have multiple incomes, some people are self employed - all of those will have a variable tax code.

 

[smokey]

Because 16k is your actual income, tax is just anouther bill realy so they wouldnt work it after out after say rent, council tax and such had been taken out of your wage

 

[Learnermum]

Your salary is how much the company is paying to have you work for them... Tax and national insurance can be fairly complicated to work out so personally I definitely prefer it all being taken off at source rather than having to do a tax return each year and have a hefty tax bill!

It can be disheartening sing the deductions column but I try not to look at that part and just look at the amount at the bottom which is what we get