Tax bands/codes for higher salary?

xylophone

http://www.bbc.co.uk/news/business-20598769

hieveryone

xylophone wrote: »

http://www.bbc.co.uk/news/business-20598769

Fab - thank you!

notanewuser

hieveryone wrote: »

Hi again,

Sorry to resurrect this thread.

I have just been checking on the directgov website and noticed that for next year, the 20% bracket is being lowered from £34,370 to £32,010.

Does this mean that I will indeed be in the 40% bracket? If the personal allowance is £8100, that will mean that the threshold is £40,110 and anything above will be 40%.

Have I worked this out correctly?

The new allowance is £9440. So anything above £41,450 will be taxed at 40%. Can you increase your pension contributions a bit?

hieveryone

notanewuser wrote: »

The new allowance is £9440. So anything above £41,450 will be taxed at 40%. Can you increase your pension contributions a bit?

Unfortunately not as it is a fixed contribution pension. Although in saying that, 'they' may well involuntary increase the allowance anyway.

If the cut off is £41,450 that means that only £475 of salary should be at 40%?

jem16

hieveryone wrote: »

Unfortunately not as it is a fixed contribution pension. Although in saying that, 'they' may well involuntary increase the allowance anyway.

If the cut off is £41,450 that means that only £475 of salary should be at 40%?

What exactly do you earn and how much do you contribute to your pension?

hieveryone

jem16 wrote: »

What exactly do you earn and how much do you contribute to your pension?

I earn £41,925. I think the new rate of contribution for my salary is 8%.

jem16

hieveryone wrote: »

I earn £41,925. I think the new rate of contribution for my salary is 8%.

Does the pension contribution come from gross salary or net salary? If it's from gross salary you still won't be paying any higher rate tax.

hieveryone

jem16 wrote: »

Does the pension contribution come from gross salary or net salary? If it's from gross salary you still won't be paying any higher rate tax.

Good question, and one I don't know the answer to unfortunately. It's a teacher pension in Scotland if that helps any.

Thanks

jem16

hieveryone wrote: »

Good question, and one I don't know the answer to unfortunately. It's a teacher pension in Scotland if that helps any.

Thanks

Yes it does. The Teacher's pension scheme takes contributions from gross salary which you will see if you look at your P60 as your taxable income will be less than your gross income.

Bad news is that your pension contribution is likely to be more than 8%(possibly 9.2%) from April but you might, if you are very, very lucky, get a small salary increase!

hieveryone

jem16 wrote: »

Yes it does. The Teacher's pension scheme takes contributions from gross salary which you will see if you look at your P60 as your taxable income will be less than your gross income.

Bad news is that your pension contribution is likely to be more than 8%(possibly 9.2%) from April but you might, if you are very, very lucky, get a small salary increase!

Ah, so that is a good sign that it is from gross salary?

Ah great, 9.2%, gotta love a Teacher's pension :rotfl:

We've not had any salary increase for a few years, and I can't remember what the 'agreement' was, I've got a feeling the freeze was for another year.

What I really want to know is, after I've been taxed on the money I work *extremely* hard for, and tax the car I travel 100 miles per day in, and pay the tax on the fuel that I travel to work in, and pay for the council tax for the house I live in -

*WILL I HAVE ANY MONEY LEFT??* :rotfl::rotfl: