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Help! 60% Tax, I am sure everyone pays 40%
Comments
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Only HMRC could tell you that for certain, possibly they just found out about it. Do you know what the un-taxed income is? Do you expect to have taxable income over £100,000 at the year end, your earnings figures seem to suggest that will be the case.Yes, now looking at the numbers I realise it is not immediately after a pay raise I started to get a lower net. I understand my tax code has changed, what is unclear why so suddenly in September. Can they plan it in a more even way so I pay an equal amount monthly? This is what the note from HMRC says: tax code K shows that you have untaxed income which is more than your tax free allowance and needs to be added to your wages, salary or pension so the additional tax can be collected. This is not so simple to understand why it happens at that point of the year.0 -
I am not too sure about untaxed income, need to check that letter again. Taxable income will be mote then 100k, it is shown on my online HMRC account and their estimate is correct.Only HMRC could tell you that for certain, possibly they just found out about it. Do you know what the un-taxed income is? Do you expect to have taxable income over £100,000 at the year end, your earnings figures seem to suggest that will be the case.0 -
I am not too sure about untaxed income, need to check that letter again. Taxable income will be mote then 100k, it is shown on my online HMRC account and their estimate is correct.
If taxable income is going to be over £100,000 then you will loose some (possibly all) of your personal allowance; so this could well be an estimated tax code to make that adjustment. The actual figure may well be a bit different this will be sorted when you do a self assessment, which I understand will be required.
You might like to look into paying extra into your pension; following link tells you a bit about it....
https://www.lovemoney.com/news/65069/60-tax-trap-income-personal-allowance0
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