a couple of tax questions about my current situation

joev

okay, that makes sense. and now apologies gain for being really dense here. but can i break it down as i understand it and someone tell me if this is right or wrong

48000 income this year
- 6475
= 41525 taxable
- 20% of 37400 (7480)
- 40% of 4125 (1650)

So this year
48000 - (7480 + 1650)
in total?

Sorry for being a bit of a dummy, just checking I have understood!

chrismac1

Spot on. On those numbers a personal pension payment of 3,400 would result in you paying no 40% tax.

joev

I will pay 1200 into my pension this year. So 40% on the remaining 2.2k is not quite as hard for me to stomach

Thanks for all the comments. I wish I could contribute something... if anyone needs any web/tech/multimedia advice let me know ;o)

John_Pierpoint

What about National Insurance? That is a tax too.