Tax 40% at £50,245?

jarv81178

Hi 
someone told me if I was earning over £37750 I’d have to pay 40% tax?! Isn’t it £50,245 or something gross pay when it’s 40%?

Thanks

Grumpy_chap

The standard bands are given here:
https://www.gov.uk/income-tax-rates

Currently £50,271 to pay 40% rate, assuming nothing to decrease (or increase) your allowances.

Dazed_and_C0nfused

£37,700 is the basic rate band but unless your adjusted net income is over £100k or you have applied for Marriage Allowance you get a Personal Allowance of £12,570 as well.

AlphaKappa

If you live north of the border, the higher rate (41%) starts at £43,663

pjread

Bear in mind if you earn e.g. £10 over the threshold, it's only that £10 that gets taxed at the higher rate.  Suspect you know, but it wouldn't be the first time someone asked the question thinking it applied to entire income.

The_Fat_Controller

This is a useful calculator

https://www.thesalarycalculator.co.uk/salary.php