Confused about the new lower -high tax bracket!

zagfles

Mikeyorks wrote: »

For most within 20% - the gain will be around £200 from the personal allowance - but with a loss of as much as £300 on the NI.
..... that is additionally increased from 1% to 2%.

People earning under about £23k will pay less NI as they are raising the primary threshold. People earning over 23k will pay more (about 1% of earnings above 23k).

Mikeyorks

joewa wrote: »

Hi,my salary is £42000 with bonus of around £4000, how much am i in the higher band etc
Ta

Unclear if the £42k is inclusive of the bonus? Either way ..... doesn't post #2 cover it?

summer1979

Sorry to highjack this post, but I am really confused with the new tax threshold. My husband earns £36,250. What % rate will he be taxed at - 20% or 40%??? Thanks in advance

Mikeyorks

summer1979 wrote: »

Sorry to highjack this post, but I am really confused with the new tax threshold. My husband earns £36,250. What % rate will he be taxed at - 20% or 40%??? Thanks in advance

20% .................. again, covered in post #2?

trekman1

Further to the information as to when you start to pay tax at the higher 40%, how does this relate to company car tax benefit. In the Car magazines they stipulate a monthly amount payable at both 25% and 40%. Do the same rules apply as with income tax, i.e. salary over £42,475 pays the higher rate for company car?

jennifernil

Yes, benefits are just extra income, so taxed in exactly the same way.

Your benefits are added to your cash salary for tax purposes. So even if your salary leaves you in 20% tax, if your benefits take you over, then anything over the limit will be taxed at 40%.