The Taxberg
£37,016
Net pay
£6,900
Tax the employer pays
£12,984
Tax you pay
Total tax paid
£19,884
Did you know your employer also pays tax on your salary? It costs the employer £6,900 to pay you £50,000. In other words, every time you spend £10 of your hard-earned money, £3.98 goes to the government.
Real tax rate
34.9%
So, with you and the employer both paying tax, what used to be a 26% tax rate now rises to 34.9%, meaning your real tax rate is actually 8.9% higher than what it seemed at first.