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Near the 40% tax bracket

I earn 35K plus overtime. .. Could anyone tell me how the overtime would be calculated? I've never done that much overtime so I've never gone into the higher tax bracket, but there may be the chance to do more coming up. Would it be worth my while? Is it 40% only on earnings over a certain amount or on the whole pay? Thanks.

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    you can earn 43,875 (after deducting any pension payments ) before you pay 40% tax

    you only pay the 40% plus 1% NI on the amount over the 43,875

    do remeber that you pay 20% plus 11% (or 9.4% if opted out) NI on 'normal earning'... so not so much different really
  • mahoney
    mahoney Posts: 377 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thank you Clapton, very helpful.
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