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2007 / 2008 Tax Bands

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Can anyone confirm how much you need to earn before you start paying 40% tax?

Looking here :
http://www.listentotaxman.com/index.php?isMarried=0&isWidow=0&isBlind=0&isStudent=0&calc=1&year=2007&age=0&add=0&taxcode=&ingr=39000&period=1&chart=0&payrise=0&gr=39000


Personal allowance 5,225

Starting Rate 0 - 2,230
Basic Rate 2,231 - 34,600
Higher Rate Over 34,000

So to pay higher tax I would expect to have to earn :

5225 + 2230 + (34,600 - 2231) = 40 231?

Is this right for this tax year?

Comments

  • noh
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Not quite right.
    You will pay higher rate tax on any excess over 5225 + 34600 = £39825

    Nigel
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    You're better off with the HMRC site for the pure rates / allowances :-

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

    .... but your calculation would have been right (at least to £1) .... had you added it up correctly!;)

    And your
    Higher Rate Over 34,000
    should, of course, read 'over £34,600'.
    If you want to test the depth of the water .........don't use both feet !
  • Joey122
    Joey122 Posts: 459 Forumite
    Part of the Furniture Combo Breaker
    Thanks - That makes sense - I appreciate your help
This discussion has been closed.
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