Comment by pmontra
9 days ago
I'm not familiar with the UK tax system but the usual solution is to have progressive (?) tax bands. Example:
On the part from 0 to 1000, no taxes
1001 to 10000, ten percent
10001 to 20000, twenty percent
20000 to 30000, thirty percent
30001 and more, forty percent
So if you were earning 29000 and get a raise to 31000 those 29000 are still taxed as they used to and the extra 2000 are split among the two bands around 30k.
Yes, except like many others have pointed out there are thresholds where you lose certain tax credits and benefits, so it's entirely possible to make £1 more but lose multiple thousand(for example if you're a parent and you go from making £99,999 a year to £100k a year)
You are right. Those are common in my country too.