Second job, income tax query

freeform

Not quite sure where to post this query...

I currently earn £32k and this will increase to £35 from January next year.

I'm considering a second (part time) job to boost savings before returning to Australia next year, but want to ensure I understand the tax bands properly.

I believe the amount you can earn before tax increases to 40% is £34, 601 but that this is after the tax free threshold. So, if my gross income will be £35k I should still be in the 20% bracket when I deduct the £5, 225?

I assume this means I could earn an extra £4, 825 per year (minus any interest earned etc)?

thanks

jhp

Yes you do take your personal allowances off before caculating your taxable bands.

http://www.hmrc.gov.uk/rates/it.htm

Bean_Counter

freeform wrote: »

So, if my gross income will be £35k I should still be in the 20% bracket when I deduct the £5, 225?

You might want to check your tax code in to be sure that you have £5,225 to play with. You may have a lower tax code if you are being taxed on any benefits in kind, for example.