The Taxberg
£3,880
Net pay
£902
Tax the employer pays
£2,659
Tax you pay
Total tax paid
£3,561
Did you know your employer also pays tax on your salary? It costs the employer £902 to pay you £6,538. In other words, every time you spend £10 of your hard-earned money, £5.45 goes to the government.
Real tax rate
47.9%
So, with you and the employer both paying tax, what used to be a 40.7% tax rate now rises to 47.9%, meaning your real tax rate is actually 7.2% higher than what it seemed at first.