Is it worth the extra work?

Tommy81

Hi folks,


I was wondering if any of you could help me with this...


I have been offered some extra work which will gross me about 4k. This will really help me to pay off some of my debt ( see my previous posts).


I can't work out how it would affect my tax.


My main salary is £43199 but I pay £4000 per year pension contributions and £1800 per year in salary sacrifices for childcare costs. This is taken of my taxable income isn't it??


Will the extra 4K push me into 40% tax??


My personal allowance is 10K

pjcox2005

Yes, it will be, income over c.£42k gets taxed at 40% but you'll be under this due to the pension contributions. However, even if you weren't, it's only the incremental amount above £42k which gets taxed at 40% not the whole wages. So you are always better off by being paid more (subject to any benefit points).

Standingtall

Hi tommy

As pjcox500 says, it is only the income above the threshold that gets taxed at 40% otherwise nobody would ever want to earn over that amount!

The only caution I would add is if you earn over £51k as it will start to affect child benefit, that is is you or Mrs Tommy have children. You would then have to register for self assessment in order thwt the gov can claw any back if applicable. My hubby has now fallen into this bracket and it is a complete pain; online codes not working, several phone calls and ultimately a claw back of:

£6.50:rotfl:

ST