How much can you earn before...

mrsshopaholic

According to your list my Husband should not be paying any tax, he earns £5959 a year and is under 65 years of age but every week he is paying tax!!! Anyone tell me how I can sort this out??

johntriguy

Martin you quote the figure of "£43,875... The higher rate tax threshold, you pay 40% tax on everything earned above this (under 65s). "

yet on the government web site it claims you pay 40% tax on anything over £37,400???

where did you get your figure of $43875 from?

Link to gov site: is hrmc.gov.uk/rates/it.htm (i cant post links)

cheers

John

eglons

How about £198,000 - You are the Prime Minister and can change all of the above:rotfl:

Sylvan

johntriguy wrote: »

Martin you quote the figure of "£43,875... The higher rate tax threshold, you pay 40% tax on everything earned above this (under 65s). "

yet on the government web site it claims you pay 40% tax on anything over £37,400???

where did you get your figure of $43875 from?

Link to gov site: is hrmc.gov.uk/rates/it.htm (i cant post links)

cheers

John

The difference between those figures is exactly £6,475. Does the government web site perhaps mean you pay 40% tax on any TAXABLE income over £37,400?

johntriguy

yes it does, it says you pay 40% on earning over 37,400.

Any

Sylvan wrote: »

The difference between those figures is exactly £6,475. Does the government web site perhaps mean you pay 40% tax on any TAXABLE income over £37,400?

YES. I think the website even spells it out like that...

"Remember, the tax band applies to your income after your tax allowances and any reliefs have been taken into account - you're not taxed on all of your income."

Any

mrsshopaholic wrote: »

According to your list my Husband should not be paying any tax, he earns £5959 a year and is under 65 years of age but every week he is paying tax!!! Anyone tell me how I can sort this out??

Well, firstly check his payslip and check what tax code he is on. PM me for details if you want.

johntriguy

johntriguy wrote: »

yes it does, it says you pay 40% on earning over 37,400.

sorry just to clarify, i dont earn more than 43K. but i do earn over 37,400 some years and i alway get hit for 40% tax, last year it was at about 33, or 34K they started to hit me, this nyear it has gone up to 37,400.

But if Martin is correct and it should be earning over 43K......the tax man owes me some money!

Fulham_Mark

i've seen some disturbing calculations in respectable newspapers on this subject.

People who go back to work from benefits lose other benefits so that their effective tax rate can be 70-80%. depending on circumstances.

When the £150k tax limit kicks in, if you are paying into a private pension theres a point where you actually pay more than 100% tax. In other words for every £1 you earn you pay more than £1 in tax

Non-celebs who chase £100k+ salaries but forgoe time with families or are sent abroad are surely verging on mental illness. Its like saying someone will make your life more unpleasant but give you £10k - except that you have to give 65% of it away

Any

johntriguy wrote: »

sorry just to clarify, i dont earn more than 43K. but i do earn over 37,400 some years and i alway get hit for 40% tax, last year it was at about 33, or 34K they started to hit me, this nyear it has gone up to 37,400.

But if Martin is correct and it should be earning over 43K......the tax man owes me some money!

How do you know you get hit for 40% tax? Sometimes you do one month (especially if there is one off big bonus in 1 month) and then it gets adjusted in the next month or over few months...
Because if it does work out in calculations on your P60 on the end of the year that you overpaid, HMRC will issue you refund.

Also personal allowance slightly increases every year, so last year it wasn't £6475...