tax threshold

canaldumidi

Thought I knew that the threshold for increasing your tax rate from 20% to 40% was £37K odd. Anyway wanted to check the exact figure so went to the gov website which says it's £50,270! So  can earn up to £50K odd and pay 20% tax right?

Then found another website where it says £37,700 "after allowances have been deducted."

OK - it's 2.30am and I'm tired, but if I get the standard personal allowance, does that mean I start getting charged 40% on earnings over £37,700 or over £50,270?

Dazed_and_C0nfused

It's £50,270.

Assuming your adjusted net income is less than £100k then you have,

Personal Allowance £12,570 (no tax to pay)
Basic rate band £37,700 (20% tax rate)