Can anyone explain how the higher rate tax bracket works?

agrinnall

I don't see anything in your post to suggest that any of your income is being taxed at the higher rate, which makes perfect sense as you don't earn enough to be in the higher rate bracket. You tax code has no direct correlation with your marginal tax rate, you seem to have confused two separate parts of the tax system, when in fact the only issue is with the tax codes that are being applied to your income sources.