Citizens income calculations
The version of the browser you are using is no longer supported. Please upgrade to a supported browser.Dismiss

ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Calculations for citizens income in UK
income taxNat ins
2
First estimate
3
Average UK salar2016£27,500.00
4
threshold£11,000.008060employed 31500000
5
high rate threshold£43,000.00ESA1320000
6
Taxable£16,500.00£19,440.00economically inactive8729885.057
7
Base rate20%0.12% inactive on esa0.15120474
8
Current tax or NI paid£3,300.00£2,332.80
% inactive who get new money
0.84879526
9
Assumed citizens income per week
£150.00
10
per year£7,800.00
11
New pre tax income£35,300.00
12
New taxable income£24,300.00
13
Assume that average earner just breaks even on the citizens income
14
15
Total income tax £11,100.00
16
New base rate of tax46%0.12
17
New higher rate 66%0.12
18
19
However this is an underestimate since it fails to account for economically innactive
20
Percent economically inactive
21.7%
21
Pecent active78.3%
22
So each worker will have to fund citizens income for 0.28
of another person
23
but only this fraction is new money due to esa
0.2352344463
24
which is£1,834.83
25
% unemployed0.048
26
JSA78
27
increase for each unemployed
£3,744.00
28
Number of unemployed per employed
0.061
29
Cost per employed£229.52
30
31
Total tax£13,164.35
32
New Tax rate 54.2%0.12
33
total marginal tax+ni66.2%
34
New upper tax rate74.2%0.12
35
New upper marginal rate tax +NI
86.2%
36
Note that the upper rate will cut in at a salary of£35,200.00
37
Take home pay now of person on average wage£21,867.20
38
Take home pay with citizens income and higher tax£19,802.85
39
Position of a worker on median income
40
Median salary2013£22,000.00
41
estimate for 2016£23,500.00
42
43
taxable income£20,300.00
44
45
net gain per week£16.59
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100