2007 / 2008 Tax Bands

Joey122

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?

noh

Not quite right.
You will pay higher rate tax on any excess over 5225 + 34600 = £39825

Nigel

Mikeyorks

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'.

Joey122

Thanks - That makes sense - I appreciate your help