Question about 40% tax bracket

CLAPTON

zzzLazyDaisy wrote: »

Also remember that the 40% is not automatically deducted by the employer under PAYE. You have to send in a self assessment form to HMRC and if you don't do this you get fined until you do send it in. Normally your employer will remind/explain this to you if you are going to drop into the 40% bracket, but the responsibility is yours.

I have never heard of any PAYE system that doesn't deduct 40% tax from salary where appropriate.

Of course if you have income other that your primary employment then extra tax may be applicable

zzzLazyDaisy

Yes, you are right, apologies, my mistake.

The employer does deduct the applicable 40% tax for your wages, but higher tax payers must also complete a tax return as tax on savings and any other income is affected. At least that was the case when I was working, which is some years ago now.

Saver-Rob

Thanks all.

jem16

zzzLazyDaisy wrote: »

The employer does deduct the applicable 40% tax for your wages, but higher tax payers must also complete a tax return as tax on savings and any other income is affected. At least that was the case when I was working, which is some years ago now.

It's not necessary always now.

If your tax affairs are simple and you only have some extra tax on savings and investments to declare a simple adjustment to the tax code is all that is required.