2011/12 Income Tax new £1k+ Allowance now the small print 'do you eanr over £35,500'

whatyadoinsucka

http://www.hmrc.gov.uk/rates/it.htm

Income Tax allowances * * * * 2009-10 * * * * 2010-11 * * * * 2011-12
Personal Allowance (1) * * * * £6,475 * * * * £6,475 * * * * £7,475

Income Tax rates and taxable bands Rate * * * * 2009-10 * * * * 2010-11 * * * * 2011-12

Starting rate for savings: 10%* * * * * * * * * £0-£2,440 * * * * £0-£2,440 * * * £0- £2,560

Basic rate: 20% * * * * * * * * * * * * * £0-£37,400 * * * * £0-£37,400 * * £0- £35,000

Higher rate: 40% * * * * * * * * * * * * * Over £37,400 * * * £37,401-£150k * £35,001-£150,000

Additional rate: 50% * * * * * * * * * * * * N/A * * * * * * * Over £150,000 * Over £150,000

BoGoF

Wrong...you do not start paying higher rate tax in 11/12 until you earn £42475 which is the personal allowance plus the basic rate band. The basic rate band has been reduced so higher rate earners do not benefit from the increased personal allowance.

Mikeyorks

whatyadoinsucka wrote: »

What they failed to tell us was the higher rate tax of 40% now comes in at £35k and not £37.4k like last year. what an absolute con.

Fully disclosed at the time the increased PA of £7475 was announced in the Emergency Budget?

To the effect 'higher rate payers will not benefit'. The reduction in the ceiling of the 20% band is to achieve that.

whatyadoinsucka

sorry guys i thought HMRC our government was pulling a fast one, sure i got taxed last year on a bonus at high rate, i best check

BoGoF

whatyadoinsucka wrote: »

sorry guys i thought HMRC our government was pulling a fast one, sure i got taxed last year on a bonus at high rate, i best check

You may have at the time it was paid due to the way the tax tables work but this would have balanced itself out over the course of the tax year......unless overall you were liable to tax at 40%