can someone check my maths on my tax please

lilmissclass

I am trying to decide if its a good financial move to get money released frm some share options I have.
I have to pay tax and national insurance on them.

I am currently paying too much tax - at the higher rate, but the Inland revenue are looking into that. The problem is I want to make sure that getting the cash from the shares doesnt then put me into the higher tax bracket - that way Id be paying more, but also wouldnt get a refund on the tax ive already paid.


I earn 27,000 - 6030 tax free allowance - 8800 for car and fuel benifit - 455 medical insurance = k 329 ( ive been given this as an estimate by payroll)

Now, this year i will also earn a bonus of 2430. So if I put earnings at 29,430 and add on the 3290 from the tax code I will have a gross earning of 32,720.

I think that is right, but welcome advice if I have done it wrong...

So that would mean I have a spare 1880 before I should be in the top tax code (34,800).

If I release some of my shares - lets say £1500 worth, will i still be in the 22% bracket, or would it be better to not take the money now, but include it in next years income.

I have about £4000 worth now and will have more next year. So im keen to spread it the best way I can.

I work it out that i have been paying above the higher tax all year, so obviously a refund would be better than the £1500 Share cash..

Please help, im not really good with this stuff...

fengirl_2

Your tax code is only a provisional measure for the deduction of tax throughout the year, so forget your code number and any overpayments, etc. You need to look at your actual income and allowances in working out your liability. I make it:
Salary 27000
Car & fuel 8800
Medical 455
Bonus 2430
Total income 38685
Less PA's 6035
Taxable 32650
Which leaves 2150 at 20% (not 22%)

lilmissclass

thanks, i forgot it was 20%

So would I be able to get away with earning another £2000 without going up into the next tax bracket?

fengirl_2

Assuming you have given correct figures, it looks like it.

lilmissclass

well i cant think of anything else that would affect it. To be on the safe side perhaps i should just release £1000

The inland revenue currently have me on k667 because they were charging my espenses as income. Hopefully that is being rectified.