Basic tax question on High/Low earner taxes

Mikeyorks

As Jem has pointed out you can temporarily hit the 40% band with overtime / bonus ..... but it will resolve itself if you're on a cumulative tax code (647L or thereabouts?).

Even if the interest is currently low .... it still makes sense to utilise tax free savings (ISA) in the longer term ..... and/or put the savings in the OH's name if

May be having a kid next year

..... she's not going to be working? You justifiably make some use of her personal allowance that way.

John_Pierpoint

I used to run a factory bonus scheme - measured day work - back in the 1960's and would get questions like this back then
"I'm working Sundays and only getting to keep x ; the tax man is making more out of my overtime than I am...................!!/!!#$'#~#!"

I have often wondered how much damage has been inflicted on labour flexibility by the PAYE system and this deeply engrained mis-conception