Income Tax - 40%?

plasmarb

Hi

I am switching jobs, my new salary is 32k. According to the HRMC website I will be a 40% rate tax payer. Am I right in thinking:

I will pay 20% on £31,785 but the remainder 215 will be at 40%? Including O/T and Callout?

Also can I transfer my partners unused tax allowance to myself?

Thanks in advance

System

You will still be a 20% tax payer.

The figures quoted on the HMRC site are the pay after your personal allowance has been removed I.E. taxable pay.

So your overall gross pay can be £42385 before you go into a higher tax bracket

philip42h

... and then:
'Yes', once you are a higher rate tax payer you pay 20% up to the higher rate threshold (£31,785) and 40% in income above that.

And 'no', you cannot transfer your partner's unused tax allowance to yourself.

plasmarb

Thanks all, why can't I transfer allowance? I believe we match what Martins says in marriage-tax-allowance.

philip42h

That's easily answered - I'm old, out of date, and, in this case, just plain wrong!

Your partner most probably can transfer up to £1,060 of his/her Personal Allowance under the Marriage Allowance provisions (I'd post a link to the "marriage-allowance-guide" if I could but I'm too 'new'!)

[They've introduce Marriage Allowance since I last looked - and I must see whether that might work for me too!.]


Edit: 'cos I've read a little further now ...
But it appears that couples can't use the transfers allowed under Marriage Allowance to move one partner out of the higher rate tax bracket. The eligibility rules require that "your partner’s income is between £10,601 and £42,385". The chances are that you can because as discussed above you are not yet a higher arte taxpayer earning above £42,385 - so you should be able to benefit from up to £1060 of your partners unused allowance to save paying tax at 20%.

sheramber

Transfer of the marriage tax allownce only applies to married couples or those in a civil partnership.

plasmarb

I am married.

I done it online yesterday, how long does it take to go though?

p00hsticks

plasmarb wrote: »

I am married.

I done it online yesterday, how long does it take to go though?

According to a few other threads on here, it isn't taking long now for the amended tax codes to come through - a few weeks ?

And when you say "I done it online yesterday", I suspect it should have been your spouse who did it, as I think (and would hope) that the applicaiton should be made by the person willnig to give up part of their allowance, not by the person taking it.

polymaff

plasmarb wrote: »

I am married.

I done it online yesterday, how long does it take to go though?

Crikey, I didn't realise you could get married online!

Or is that the divorce?

plasmarb

haha, cheeky.