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Tax on second income
djburz
Posts: 2 Newbie
in Cutting tax
Hi
I have been offered a second job next year and I need to make sure that it is worth my while.
I currently earn £36000 a year and my personal tax allowance for 2008-2009, after deductions for taxable expenses is £5849. I assume I am therefore correct in saying that I am taxed at 20% on the £30151 after my tax allowance has been used up.
If so, does this mean that seeing as I can earn up to £34,800 before jumping to the 40% tax bracket, I still have £4649 to play with before reaching the higher tax threshold?
Please let me know if I have got this right ASAP as I need to make a decision on the second job by the end of the week.
Thanks
Paul
I have been offered a second job next year and I need to make sure that it is worth my while.
I currently earn £36000 a year and my personal tax allowance for 2008-2009, after deductions for taxable expenses is £5849. I assume I am therefore correct in saying that I am taxed at 20% on the £30151 after my tax allowance has been used up.
If so, does this mean that seeing as I can earn up to £34,800 before jumping to the 40% tax bracket, I still have £4649 to play with before reaching the higher tax threshold?
Please let me know if I have got this right ASAP as I need to make a decision on the second job by the end of the week.
Thanks
Paul
0
Comments
-
yes ...
unless you contribute to a pension in which case the pension contributions are tax free so you could earn more before paying 40% tax.0
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