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Tax 40% at £50,245?
jarv81178
Posts: 108 Forumite
in Cutting tax
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%?
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
0
Comments
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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.1 -
£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.1
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If you live north of the border, the higher rate (41%) starts at £43,6631
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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.
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