Tax % when on a rotation

[Paul Smith]

Hey guys I was hoping you could help with this. I’m looking to accept a new job which is the first time I have been on a rotation and I wondered how it works for tax. It will be a base salary then day rate on top of that.

Just say I’m on my month off and only get my my base monthly salary of £1900. Will I pay 20% tax on this or 40%

Then I work my 4 weeks offshore (plus my basic) which in total is say £5800. Will I then pay 40% tax on this?

Really what I’m asking is will my tax rate go up and down, for example 20% (Month at home) then 40% ( for offshore days)

Hope that makes sence? Trying to work out what my take home wage would be when getting paid for the month at home.

[Ray Shields]

It doesnt quite that way. I assume you are meaning UK.

You will pay tax on what you earn that tax year.

Basic rate: 20% £0 – £34,370
Higher rate: 40% £34,371-£150,00
Additional rate: 50% Over £150,000

You get a tax free allowance of whatever your tax code is, assuming is 810L then the first £8100 you will pay no tax on. There is also a 10% tax on the first £2710 of interest you earn on savings.

[Paul Smith]

Hi mate, thanks! yeah the UK.

I kinda knew thats how it worked but this year at the start of the new tax year it was still taxed as normal. 40%. Why is that if the first £8100 if tax free?

cheers
Paul

[Ray Shields]

Everyone gets a tax allowance, you can earn so much before you start to pay tax. The Taxman will issue you a taxcode. most people its 810L, the 810 means you can earn £8100 before you pay tax. Check your payslip or you should get a letter from the taxman telling you what your code will be for the coming tax year

[Robert James]

Getting tax allowance is must. And if you are getting tax allowance, it mean you are on safer side. You don’t have to worry about it as you will be earning much more.

immobilier expert

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