Tax for 2012

lisa011182

My other half earned just over £36,000 last year (before tax) but this was through doing a lot of overtime (his standard wage is £26,000). As the tax threshold is now 40% for over £35,000 will the tax office just assume that he will earn this amount again next year and take off 40% for every wage he gets this year. Please help!!

molerat

40% is payable on earnings above 35K + his personal allowance, which this year is normally £7475, so on £42475 +. If he is taxed by PAYE the correct tax will be taken at source, there are no assumptions made by the tax office.

SeniorSam

Income of £35,000, or £36,000 LESS your personal allowance and as that will be below £35, 000, then only 20% will be payable on the balance......................... which is the case for your other half.

Sam

suso

lisa011182 wrote: »

My other half earned just over £36,000 last year (before tax) but this was through doing a lot of overtime (his standard wage is £26,000). As the tax threshold is now 40% for over £35,000 will the tax office just assume that he will earn this amount again next year and take off 40% for every wage he gets this year. Please help!!

HMRC will presume he will earn the same again in this year as the most recent information they have (which is the 2009/2010 P60)

It won't make any difference if your husband receives just one source of income.

CLAPTON

suso wrote: »

HMRC will presume he will earn the same again in this year as the most recent information they have (which is the 2009/2010 P60)

It won't make any difference if your husband receives just one source of income.

HMRC makes no assumptions about the level of earnings.

Tax is deducted by the company payroll system based on the taxcode provided by HMRC and the persons earning on a (cumulative ) monthly basis starting in April each year.

Previous years' earnings are irrelevant other than any coding through the taxcode.