Likely to hit 40% tax threshold earlier than usual - help

longwalks1

My yearly salary including shift allowance is approx £44,000 but this year (since april) there has been pretty much unlimited overtime, so happy days :T

My question is, I'm going to be hitting the threshold a lot earlier than usual, possibly next month, does everything I earn from that point automatically be taxed at 40%?
Hope that made sense and thanks in advance

jem16

No it doesn't

Each month you receive one twelfth of your tax free allowances, one twelfth of the 20% band and one twelfth of the 40% band.

grizzly1911

There would be a limited effect if you received a disproportionately high payment in one month, especially at the start of a tax year though.

I used to receive an annual bonus, from previous year, in April pay day and it would throw me out for three months or so but it balanced out across the year.

chrismac1

Pension contributions are a good idea for many people in your situation. For every £60 you put in of net pay, the pension provider claims £20 tax to put in, and you pay £20 less tax as well.

BoGoF

chrismac1 wrote: »

Pension contributions are a good idea for many people in your situation. For every £60 you put in of net pay, the pension provider claims £20 tax to put in, and you pay £20 less tax as well.

Don't you mean £80 of net pay?