COVID-19 — Coronavirus

[denislawsbackheel]

Whatever site you’ve just used, it’s wrong.

You don’t pay £5,000 in basic tax plus national insurance on a £25k annual wage.

That means that person has no personal allowance.

Earn £25,000 gross in 2019/2020 and you'll take home £20,538. This means £1,711 in your pocket a month.

Over the year you'll pay £2,498 income tax and £1,964 in National Insurance.

ie your total tax would be circa 20% (if we call NI a tax, which it isn’t, in terms of basic income taxation, it’s contribution towards your state pension qualification and the NHS)

That’s why I’m asking if this 80% thing is then taxed. Because if it’s not, it’s basically the same net pay people would have received before.

It’s being called a taxable grant on the BBC

 

[Proy]

The government scheme isn't a wage covering scheme, it's a job retention scheme.

Taxpayers have to pay because it's a huge crisis. Companies don't have millions or billions sat around to burn away whilst employees are doing nothing.

In my company I'm okay because I can work from home and remain somewhat productive but I wouldn't bet on anyones job safety if this lasts over 6 months.

There will be lasting damage but I personally think the boom afterwards will more than pay for it.

Not suggesting it is but I realise it could well be construed that way.

The point I am making is that this isn’t free money. It’s going to be paid back and I’m okay with that.

 

[SWP's back]

Agreed. My bad. I don't know why but for some reason the calculator didn't include the personal allowance when I ran it. I ran it again and it did. Your take home would be £20,538, so close to £20,000 but not more.

That said, if you were on £30,000 a year then you'd get £24,000 with 80% of gross, or £23,938 if on full pay, taxed. So in that case, I would be right (just!) ;-)

Ha, no worries mate.

I’m still intrigued to see if you’re given 80% (and not taxed on it so you’re basically the same as before) or given 80% but then you have NI and basic income tax deducted. I guess we’ll only know when people start receiving it in their account and they get it statements.

 

[Mayor West]

500,000 infected worlwide

Its crazy the absolute chaos this is causing when seeing such a small portion of the global population infected

 

[BlueHammer85]

Even during a pandemic you can rely on a Chippy v SWP tax debate.

 

[johnmc]

Its crazy the absolute chaos this is causing when seeing such a small portion of the global population infected

They are only confirmed cases I assume. The true number will be millions.

 

[SWP's back]

It’s being called a taxable grant on the BBC

Cheers bud.

So they’re not being entirely truthful saying they’re giving people 80% (as they’re tanking some back and giving it the taxman).

Best similie I have is if we buy Sancho back for £100m (but have a 15% sell on clause), we’ve not actually spent £100m as we get £15m back).

 

[SB Blue]

Given this support I think HS2 is toast.

No, we’ll take up the Chinese offer to build it in 5 years, what could go wrong?

 

[Alan Harper's Tash]

Game Changer must be the in word of this Pandemic.

Unprecedented.

 

[kevin horlocks wand]

They are only confirmed cases I assume. The true number will be millions.

agreed but that means the mortality rate is a lot lower then .