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How much can you earn before...
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What's the maximum salary for getting working tax credit and does this only apply if you have dependant children?0
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"£32,300... Max. family earnings where kids aged 16-19 can get £30/week Educational Maintenance Allowance"
Strictly speaking, you can't get £30 a week with this parental income. For £30 a week, the maximum income is £28,817.
For £20 a week, it's £25,521 and for £30 a week, it's £30,810.
(This is in England, maybe different for Scotland)0 -
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...
My income is about the same every month, and towards the end of the tax year, the tax payments on the same monthly figures go up and work out at 40% of the income, not 20% as in the previous months, and the take home pay drops by a 5th.
Believe me you do notice it, because it varies from year to year, i have been on a monthly tax code some times, or too high/ too low a code other years, its a real pain to work out what is correct sometimes, especially as the final earnings for the year can fluctuate by up to 5k, its hard to get coded correctly.
Finally HRMC will not refund you automatically, you have to work it out that you have over paid, then notify and justify it to them then they will refund..............but if you under pay they are right on it!0 -
I would respectfully suggest that if those people saying the 50% tax rate is right were actually earning enough to pay it themselves, they would feel differently. I think there is a certain amount of jealousy going on here. Once again the higher earners are paying for the debts of the country and for those people too idle to work for themselves. There are no incentives to work up the corporate ladder and therefore hopefully earn higher salaries when the government intends to take half of it away.0
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"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."
Well I wish they would hurry up with my husband's tax rebate claim. He's being taxed on all his income and then some. He's had an almost a K700 (it's K600 something) tax code since August 2008 and it's crippling us - despite him having PAYE for over 20 years.0 -
As a clarification on the higher rate tax point, the people saying £43,875 are correct
it is broken down like thisFormer MSE team member0 -
johntriguy wrote: »My income is about the same every month, and towards the end of the tax year, the tax payments on the same monthly figures go up and work out at 40% of the income, not 20% as in the previous months, and the take home pay drops by a 5th.
Believe me you do notice it, because it varies from year to year, i have been on a monthly tax code some times, or too high/ too low a code other years, its a real pain to work out what is correct sometimes, especially as the final earnings for the year can fluctuate by up to 5k, its hard to get coded correctly.
Finally HRMC will not refund you automatically, you have to work it out that you have over paid, then notify and justify it to them then they will refund..............but if you under pay they are right on it!
This sounds like you have company car or any other benefit from the company and then this is also calculated as INCOME.
So basically you have no idea what you are talking about, and I don't blame you, that is why accountants exist and make living. Government makes it difficult for ordinary people to understand taxes.
HMRC does send you refund automatically, it just takes few years (my OH suddenly got refund from 03/04 last year just before Christmas). But to justify it if you know you overpaid is not difficult. You just send them P60 and P11D.
By the way TAX CODE DOES NOT CHANGE ACCORDING TO EARNINGS. tax code change if you get any other benefits then monetary (as I say company car) or you have more then 1 income.0 -
Well I wish they would hurry up with my husband's tax rebate claim. He's being taxed on all his income and then some. He's had an almost a K700 (it's K600 something) tax code since August 2008 and it's crippling us - despite him having PAYE for over 20 years.
Well, firstly you need to find out why is he on K700 tax code?? What does that have to do with being on PAYE for over 20 years???0 -
There seems to be amount of people who do not understand what counts as income, how is it calculated and what affects tax codes.
I suggest that these people come over to Cutting tax board which is full of accountants and tax specialists and we will help you out.0 -
Well, firstly you need to find out why is he on K700 tax code?? What does that have to do with being on PAYE for over 20 years???
I thought (obviously wrongly) that if he was paying as he earned then he wouldn't be due anymore.
On this years P11D it says he got quite a bit as benefits in kind. He hasn't received anything yet. It's complicated due to double taxation as he worked abroad (but has always paid his tax over here).0
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