Am I in the 40% tax bracket?

Spendless

Can someone help me with what tax bracket hubby is in please?

He earns less than the amount given but we have benefits in kind, company car, all diesel for car paid for (regardless of whether business or private) and family BUPA. This gives him a negative tax code (K).

I'd like to know as his company is offering childcare vouchers and I know that he can sacrifice upto £50 a week and it be exempt from tax and NI. I'd like to know what figures I should be working to as we are going to see if it is worthwhile me returning to work by using these vouchers.

lipidicman

There isnt enough info in your post. I cant answer it anyway, but whoever can will need more figures so get them up now! If it is too complex you may need to seek proper advice

Spendless

What info do you need?

I would prefer not to post hubbys salary up(for personal reasons).

I've just got his tax code out which gives him for tax year 2005/2006 personal allowance of 4895
flat rate job expenses 45

Total 4895

Amounts taken away from total allowances

Car benefit 4480
car fuel benefit 3168
Medical Ins 307

Total deductions 7955

excess deductions for year is -3015

making tax code K302

lipidicman

As I said I cant help - too complex for me. I dont have any special allowances and I would do my own calculations on what would be best. However I dont think anyone will be able to help without the Gross Salary figure.

Can the IR help? You can certainly get all the figures from their website if you want to calculate it yourself, but they may offer more help than this (anyone?). Otherwise you may need to seek professional advice.

lipidicman

On another matter, have you done the calculations as to how much that car is costing you in tax and is it worth it? The tax on that £7955 must be at least £1500?

Spendless

lipidicman wrote:

On another matter, have you done the calculations as to how much that car is costing you in tax and is it worth it? The tax on that £7955 must be at least £1500?

Last time hubby looked into it -yes it was worth it.

We have a people carrier as we often have my elderly gran with us as well as 2 kids. Also with regards to fuel as well as hubby doing a lot of business miles on a personal level we do have family about 100 miles away that we visit and hubby works about 50 mins away from home when in office and I beleive you can't count to and from work as business miles (is that still correct?).

EDIT-BTW if someone tells me that they could work the tax bracket out for me if I were to put up salary, I'm happy to PM or put figures up for a couple of mins before deleting-just don't want details on board permanantly.

ctm_2

You don't need to post his salary. All you need to do is this:

The 40% band starts at £32400.

So take your husbands salary, and ADD onto the £3025. If that total is over £32500, then he is into 40%.

The reason is that with a K code it is a negative allowance, so you have to add the amount onto your income.

Can give a more detailed explanation if you want.

lipidicman

ctm, that much is true. I should have pointed that out. I was taking that for granted (not very helpful of me)

The above is great, now you need to know the details of the childcare vouchers, the other costs, what you can earn...etc Wasn't the original question to do with 'would you be better off'?

Spendless

ctm wrote:

You don't need to post his salary. All you need to do is this:

The 40% band starts at £32400.

So take your husbands salary, and ADD onto the £3025. If that total is over £32500, then he is into 40%.

The reason is that with a K code it is a negative allowance, so you have to add the amount onto your income.

Can give a more detailed explanation if you want.

Thanks. That would make him a 40% tax payer. That means the childcare vouchers are even better value than I thought (if I've done it right).

lipidicman

And as an additional point, pension contributions would be great value too.........