HOW THE BRITISH INCOME TAX WORKS OUT

Dominion, Volume 9, Issue 2618, 13 November 1915, Page 7

HOW THE BRITISH INCOME TAX WORKS OUT

'A DRASTIC LEVY, The British income-tax proposals are really more drastic than they appear to bo at first sight, says the London "Daily News." The basis has been broadened by as much as 25 per cent., while the. increase in the tax itself is equivalent to 40 per cent., or, on earned incomes, to about 2s. Id. in = the £. For the next six months, however, the increase.will be only 20 per cent., as the tax is not retrospective. At present on ah earned income of, say, £200 per annum the tax is Is. 6d. in the £on £40 of it. In future the tax will be 2s. Id. on £80 of the £200; while those with incomes of over £130 are to be taxed on the samo basis. _ The total amount given in the following table is'that payable in lespect of a year's income, but Tinder the new method of collection this can he paid ■in four quarterly instalments. Our calculations cover the tax only' of the man with no children : Weekly Salary. Annual • Tax. £ s. d. £ s d 2 15 0 ;.. & 8 4 3 0 0 ■ 315 8 ' 3 10 0 6 10 4 4 0 0 9 4 8' .5 0 0 14 14 0 .. 5 10 0 17 8 8 6 0 0 20 3 4 6 10 0 22 18 0 7 0 0 25 12 8 7 10 0 28 7 4 ' 8 0 0 31 2 0 Salary yearly. 'Annual tax. £ ■ £ s. d. ' 450 34 1.3 o , 500 39 17 10 550 4.i; a 8 600 , 50 7 6 650 60 18 0 700 66 3 0 750 78 15 0 SOO 85 0 0 SoO 89 5 0 900 04 10 0 950 90 15 10 1000 105 0 0 Super-tax. Annual salary. 'Annual tax. £ £ "5,000 J,020 10,000 2,529 100.000 1 34,029 The increase of 40 per cent, is, of course, not retrospective. It will bo payable for the remaining six months of the financial year, and will amount to "0 per cont.