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Tax Code 443L Earnings £40882-High Rate Tax?

I am due to receive a £2000 annual bonus in my salary 18/3 which will make my Gross earnings for 2010/11 Tax Yr £41000. My tax code is 443L. Will this mean I will pay higher rate tax for this year & if so can I avoid this by paying a lump sum in to my pension before 5th April?

Thank you.

Comments

  • noh
    noh Posts: 5,819 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    No you will not be in the higher rate tax band unless you have other income in addition to that stated.

    You start paying 40% tax when your total income in 2010/2011 exceedes your tax free allowance by more than £37400.
    So in your case your income above £41830 will be subject to 40% tax.

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