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40% Higher Tax Bracket. Will this affect me?
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my basic salary is less than £30K. But because I have just had a backdated payrise and also some overtime pay, my gross for the month of April was £3254.
I have been charged more tax than I expected so i assume the tax is worked out as
gross monthly pay £3254 x 12 = £39,048
so the IR thinks I earn £39K (I wish!!)
Will my tax be corrected next month or do I have to wait until the end of the year?0 -
Gambler:
The taxman uses tax tables to work out any tax due. We have only just started a new tax year so it looks to the taxman that you are earning a lot.
Had you got these payments later in they year it probably would not have taken you (temporarily) into a higher tax bracket
However, over the next few months it should even out OK and you will not have to claim any 'rebate'.0 -
Gambler
If you have a cummulative tax code then the extra tax will be returned to you next month. Your gross pay year to date will then be £3254 + 2500 - an annual rate of £30754, well below the higher rate limit.
Your tax code is cummulative if it does not have WK1 or Mth1 after it.if i had known then what i know now0 -
cash99 wrote:Your tax code is cummulative if it does not have WK1 or Mth1 after it.
Edit: The profanity checker doesn't like that! The !!! is C U M (without the spaces)0 -
donsaini wrote:...however also remember that you can 40% tax relief on all pension contributions. also 40% relief on any tax deductible items needed for work
also can you add any tax credits to your tax code
hope that helps
understood all the above, then got lost about the 40%tax relief on pension.
Is this automatically done via payroll ?
I normally have to fill in a tax return to include my PD11 benefits, but have never included anything about my pension.
Help appreciated. This is a Great site.
.... Ignore above - found answer on another thread - What should a P60 show? re pension etc0
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