tax band & child benefit help...

rtidrtid

sorry in advance as i'm sure i should know this already!

If i'm earning 39k i am in the 40% tax bracket. how is the personal allowance affecting this?

if you earn 46k you're still in the 40% tax bracket - but child tax credits won't apply?

sorry if this sounds silly

[Deleted User]

changes in CB wont kick in until 2013 and no one knows what the higher tax rate banding will be by then,if it were to start in 2011 the cut off point wouldnt be as they said 44k but 42.5k

System

rtidrtid wrote: »

If i'm earning 39k i am in the 40% tax bracket. how is the personal allowance affecting this?

if you earn 46k you're still in the 40% tax bracket - but child tax credits won't apply?

You are not in the 40% tax bracket if your gross is £39K.
Assuming you are not paying back any underpayment then your tax free personal allowance would be £6475 so

£6475 - 0% tax
£37400 - 20% tax

£6475 + £37400 = £43875 before you enter the 40% tax bracket