Tax bracket

abdul56

On my pay slip there is taxable pay and Gross pay. Which should I use to calculate if I move into the next tax bracket?

Thanks

chrisbur

abdul56 wrote: »

On my pay slip there is taxable pay and Gross pay. Which should I use to calculate if I move into the next tax bracket?

Thanks

It is the taxable pay figure that will decide which tax band you are in. If you are going to check this don't forget that the taxable pay figure for each tax band will depend on where you are in the tax year. That is, say you are at month 3 of the tax year then the taxable pay figure for moving from 20% tax to 40% tax will be 3/12 of the annual figure.