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2007 / 2008 Tax Bands
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Joey122
Posts: 459 Forumite

in Cutting tax
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?
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?
0
Comments
-
Not quite right.
You will pay higher rate tax on any excess over 5225 + 34600 = £39825
Nigel0 -
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 yourHigher Rate Over 34,000If you want to test the depth of the water .........don't use both feet !0 -
Thanks - That makes sense - I appreciate your help0
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