The Taxberg
£2,831
Net pay
£637
Tax the employer pays
£1,784
Tax you pay
Total tax paid
£2,421
Did you know your employer also pays tax on your salary? It costs the employer £637 to pay you £4,615. In other words, every time you spend £10 of your hard-earned money, £5.25 goes to the government.
Real tax rate
46.1%
So, with you and the employer both paying tax, what used to be a 38.7% tax rate now rises to 46.1%, meaning your real tax rate is actually 7.4% higher than what it seemed at first.