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Higher Rate Tax?
philng
Posts: 833 Forumite
in Cutting tax
My earnings for this tax year are £38158 & my tax code is 339L. I have just made a £1700 lump sum payment to my company AVC & received Basic Rate Tax refund on this directly via PAYE,
At what point based on the above will I have paid 40% tax or are all my earnings within the basic rate tax threshold?
At what point based on the above will I have paid 40% tax or are all my earnings within the basic rate tax threshold?
0
Comments
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based on you tax code of 339 then you can earn a taxable income of
3390+34,800= 38199 before paying 40% tax
In this context your taxable earnings means your earning after deduction of occupational pension..
In any event it looks like you are just below the 40% tax threshold whether or not you pay into an occupational pension scheme.0 -
with a similar tax code next year how much can i earn prior to paying higher rate tax?0
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the 34,800 increases to 37,400
but remember thats figure is net of any pension contributions so your 'gross' can be higher0
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