Income Tax bands query

Moots2024

Sorry if I have raised this query in the wrong category.

I have a very basic question regarding current income tax bands in England. So basic I feel slightly embarrassed asking. 

Can I check please what the current threshold is for 40% income tax kicking in.

GOV.UK indicates that it kicks in at £37,700 (copied below).

England and Northern Ireland

The standard employee personal allowance for the 2023 to 2024 tax year is:

• £242 per week
• £1,048 per month
• £12,570 per year

PAYE tax rate	Rate of tax	Annual earnings the rate applies to (above the PAYE threshold)
Basic tax rate	20%	Up to £37,700
Higher tax rate	40%	From £37,701 to £125,140
Additional tax rate	45%	Above £125,140

However I was given to understand from the MSE website that the 40% rate kicks in on income over £50,270. 

The reason I ask is that I have queried tax charged on on a pension payslip that I have received and in explaining how it was calculated the pension fund has indicated that income over £37,700 is charged at 40%.

Sorry - I am not being allowed to include links in my message as I am a relative newbie to the forum.

Be grateful for any confirmation of the position please.

[Deleted User]

Moots2024 said:

Sorry if I have raised this query in the wrong category.

I have a very basic question regarding current income tax bands in England. So basic I feel slightly embarrassed asking. 

Can I check please what the current threshold is for 40% income tax kicking in.

GOV.UK indicates that it kicks in at £37,700 (copied below).

England and Northern Ireland

The standard employee personal allowance for the 2023 to 2024 tax year is:

• £242 per week
• £1,048 per month
• £12,570 per year

PAYE tax rate	Rate of tax	Annual earnings the rate applies to (above the PAYE threshold)
Basic tax rate	20%	Up to £37,700
Higher tax rate	40%	From £37,701 to £125,140
Additional tax rate	45%	Above £125,140

However I was given to understand from the MSE website that the 40% rate kicks in on income over £50,270. 

The reason I ask is that I have queried tax charged on on a pension payslip that I have received and in explaining how it was calculated the pension fund has indicated that income over £37,700 is charged at 40%.

Sorry - I am not being allowed to include links in my message as I am a relative newbie to the forum.

Be grateful for any confirmation of the position please.

Look at the headings: 

Annual earnings the rate applies to (above the PAYE threshold)

12570 tax free. 

Next 37700 taxed at 20%. 

That’s a total of 50270 before 40% applies. 

Albermarle

[Deleted User] said:

Moots2024 said:

Sorry if I have raised this query in the wrong category.

I have a very basic question regarding current income tax bands in England. So basic I feel slightly embarrassed asking. 

Can I check please what the current threshold is for 40% income tax kicking in.

GOV.UK indicates that it kicks in at £37,700 (copied below).

England and Northern Ireland

The standard employee personal allowance for the 2023 to 2024 tax year is:

• £242 per week
• £1,048 per month
• £12,570 per year

PAYE tax rate	Rate of tax	Annual earnings the rate applies to (above the PAYE threshold)
Basic tax rate	20%	Up to £37,700
Higher tax rate	40%	From £37,701 to £125,140
Additional tax rate	45%	Above £125,140

However I was given to understand from the MSE website that the 40% rate kicks in on income over £50,270. 

The reason I ask is that I have queried tax charged on on a pension payslip that I have received and in explaining how it was calculated the pension fund has indicated that income over £37,700 is charged at 40%.

Sorry - I am not being allowed to include links in my message as I am a relative newbie to the forum.

Be grateful for any confirmation of the position please.

Look at the headings: 

Annual earnings the rate applies to (above the PAYE threshold)

12570 tax free. 

Next 37700 taxed at 20%. 

That’s a total of 50270 before 40% applies. 

Unless of course your personal allowance is not £12570 due to other reasons.