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How much do you have to earn before you pay 40% tax
northernsal
Posts: 50 Forumite
in Cutting tax
Hi there,
Can someone please explain the tax boundaires. How much do you have to earn before you have to pay 40% tax, alos what is the other boundary for twenty percent tax.
I have a long commute to work but am not self employed, would I be eligble for any tax allowances for journeys etc.
Thanks in advance
X
Can someone please explain the tax boundaires. How much do you have to earn before you have to pay 40% tax, alos what is the other boundary for twenty percent tax.
I have a long commute to work but am not self employed, would I be eligble for any tax allowances for journeys etc.
Thanks in advance
X
0
Comments
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Your journey to work is not tax allowable.
The boundaries for this tax year are
£1-£2,230 = 10%
£2,231-£34,600 = 22%
£34,601+ = 40%
This all starts after your £5,225 has been used up of course."I'm not from around here, I have my own customs"
For confirmation: No, I'm not a 40 year old woman, I'm a 26 year old bloke!0 -
This all starts after your £5,225 has been used up of course.[/quote]
Hi Riq,
WHat do you mean by this?0 -
You have a personal taxfree allowance of £5,225 which you can earn before you pay any income tax on it.
Sorry, I am not the best person at explaining things. Thankfully I am not a teacher!
"I'm not from around here, I have my own customs"
For confirmation: No, I'm not a 40 year old woman, I'm a 26 year old bloke!0 -
northernsal wrote: »This all starts after your £5,225 has been used up of course. Hi Riq,
WHat do you mean by this?
Basically it means that assuming tax code of 522L you can earn £39,825 before you enter higher rate tax. ( £34,600 + £5225 of personal allowance).0 -
Basically it means that assuming tax code of 522L you can earn £39,825 before you enter higher rate tax. ( £34,600 + £5225 of personal allowance).
And you'll only pay 40% tax on earnings above this level - it seems to be a common misconception that once you hit the 40% level you pay 40% of everything. Make a list of important things to do today. At the top, put 'eat chocolate'. Now, you'll get at least one thing done today. 0 -
Dont forget to keep your reciepts (Grrrr im going through mine right now!).............0
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Hi i have a tax code of 233L/1 and have a company car.
What does this mean for me?0 -
It means you have £2330 of personal tax-free allowances. probably because of your company car which is a taxable benefit so it reduces your allowances.0
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i dont even want a company car but need it for my job!0
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Company cars lower your free tax limit by 3K, soo...
correct me if i'm wrong but...
0-2330 - tax free
2330 - ~4500 - 10%
4500 - ~36900 - 22%
anymore is 40%
Those figures are approx! also as of april this year (i think) there are only 2 tax bands of 20% and 40%0
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