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 Table: The impact on earnings of income tax
 and student loan repayments
   November 2010

                         
Average earnings 2009 Total earnings Earnings to be taxed @ 20% Tax paid @ 20% Earnings to be taxed @ 40% Tax paid @ 40% Total Income Tax payable Income Tax as % total earnings Student loan repayments payable on earnings of: 9% of earnings liable for loan repayment Total Income Tax and loan repayments Total IT and loan repayments as % total earnings Increase in 'tax bill' if loan repayments added
  £25,000 £18,525 £3,705     £3,705 14.8% £3,999 £360 £4,065 16.3% 9.7%
  £30,000 £23,525 £4,705     £4,705 15.7% £8,999 £810 £5,515 18.4% 17.2%
  £40,000 £33,525 £6,705     £6,705 16.8% £18,999 £1,710 £8,415 21.0% 25.5%
  £50,000 £37,400 £7,480 £6,125 £2,450 £9,930 19.9% £28,999 £2,610 £12,540 25.1% 26.3%
  £80,000 £37,400 £7,480 £36,125 £14,450 £21,930 27.4% £58,999 £5,310 £27,240 34.0% 24.2%
All employees £31,916 £25,441 £5,088     £5,088 15.9% £10,915 £982 £6,071 19.0% 19.3%
Public sector employees £30,900 £24,424 £4,885     £4,885 15.8% £9,899 £891 £5,776 18.7% 18.2%
Police officers (inspectors and above) £56,421 £37,400 £7,480 £12,545 £5,018 £12,498 22.2% £35,420 £3,188 £15,686 27.8% 25.5%
Medical practitioners £84,451 £37,400 £7,480 £40,575 £16,230 £23,710 28.1% £63,450 £5,711 £29,421 34.8% 24.1%
Social workers £30,040 £23,565 £4,713     £4,713 15.7% £9,039 £814 £5,527 18.4% 17.3%
Higher education teaching professionals £46,251 £37,400 £7,480 £2,375 £950 £8,430 18.2% £25,250 £2,273 £10,703 23.1% 27.0%
Further education teaching professionals £34,090 £27,615 £5,523     £5,523 16.2% £13,089 £1,178 £6,701 19.7% 21.3%
Secondary education teaching professionals £36,837 £30,362 £6,072     £6,072 16.5% £15,836 £1,425 £7,498 20.4% 23.5%
Scientific researchers £37,134 £30,659 £6,132     £6,132 16.5% £16,133 £1,452 £7,584 20.4% 23.7%
                         
 
IT = Income Tax

Source: Average earnings: Annual Survey of Hours and Earnings 2009 (ONS) http://www.statistics.gov.uk/downloads/theme_labour/ASHE-2009/2009_occ4.pdf mean average gross full-time employees, table 14.7a; tax information for 2010-11: http://www.hmrc.gov.uk/incometax/index.htm ; tax payment and loan repayment calculations: UCU.

Notes: All employees assumed to have an Income Tax Personal Allowance of £6,475; Basic rate of Income Tax @ 20% paid on earnings between £6,476 and £43,875; Higher rate of Income Tax @ 40% paid on earnings between £43,876 and £156,475; Student loans for tuition fees and maintenance are repaid at the rate of 9% of earnings above £21,000; Student loan repayments are made by graduates if earnings are above £21,000; until the loan is repaid; providing the loan is less than 30 years ‘old’.