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    • Riq
    • By Riq 27th Jan 08, 6:30 PM
    • 9,713 Posts
    • 8,219 Thanks
    Riq
    • #2
    • 27th Jan 08, 6:30 PM
    • #2
    • 27th Jan 08, 6:30 PM
    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!
  • northernsal
    • #3
    • 27th Jan 08, 6:35 PM
    • #3
    • 27th Jan 08, 6:35 PM
    This all starts after your £5,225 has been used up of course.[/quote]


    :confused: Hi Riq,

    WHat do you mean by this?
    • Riq
    • By Riq 27th Jan 08, 6:38 PM
    • 9,713 Posts
    • 8,219 Thanks
    Riq
    • #4
    • 27th Jan 08, 6:38 PM
    • #4
    • 27th Jan 08, 6:38 PM
    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!
    • jem16
    • By jem16 27th Jan 08, 6:57 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    • #5
    • 27th Jan 08, 6:57 PM
    • #5
    • 27th Jan 08, 6:57 PM
    This all starts after your £5,225 has been used up of course.


    :confused: Hi Riq,

    WHat do you mean by this?
    Originally posted by northernsal

    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).
  • CarolynH
    • #6
    • 5th Feb 08, 5:21 PM
    • #6
    • 5th Feb 08, 5:21 PM
    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).
    Originally posted by jem16

    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.
  • Zebedee69
    • #7
    • 5th Feb 08, 6:32 PM
    • #7
    • 5th Feb 08, 6:32 PM
    Dont forget to keep your reciepts (Grrrr im going through mine right now!).............
  • frog_southampton
    • #8
    • 12th Feb 08, 10:10 PM
    • #8
    • 12th Feb 08, 10:10 PM
    Hi i have a tax code of 233L/1 and have a company car.
    What does this mean for me?
    • jem16
    • By jem16 12th Feb 08, 10:31 PM
    • 18,363 Posts
    • 11,023 Thanks
    jem16
    • #9
    • 12th Feb 08, 10:31 PM
    • #9
    • 12th Feb 08, 10:31 PM
    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.
  • frog_southampton
    i dont even want a company car but need it for my job!
  • bigstevex
    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%
  • Jelen
    Hi regarding not wanting a company car and needing it for your job there is great little used trick for avoiding paying any tax on a company car but still getting full benefit for your work there are a few things you need to do to set it up as follows
    1 buy a car
    2 inform your company that you no longer use the vehicle for personal use
    3 leave the car at your place of work when you go home
    Simples
    It may seem bizarre but it is what ambulance fire and police drivers have been doing for years and they pay no tax for the use of the "company vehicle"
    However when you work out the costing you ll find that for the same cost as your tax your own car won't be quite as nice

    Lol
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