Income Tax bands query

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 rateRate of taxAnnual earnings the rate applies to (above the PAYE threshold)
Basic tax rate20%Up to £37,700
Higher tax rate40%From £37,701 to £125,140
Additional tax rate45%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.

Comments

  • Ferro
    Ferro Posts: 103
    First Post Name Dropper
    Forumite
    edited 1 February at 10:16AM
    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 rateRate of taxAnnual earnings the rate applies to (above the PAYE threshold)
    Basic tax rate20%Up to £37,700
    Higher tax rate40%From £37,701 to £125,140
    Additional tax rate45%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
    Albermarle Posts: 21,085
    First Anniversary First Post Name Dropper
    Forumite
    Ferro 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 rateRate of taxAnnual earnings the rate applies to (above the PAYE threshold)
    Basic tax rate20%Up to £37,700
    Higher tax rate40%From £37,701 to £125,140
    Additional tax rate45%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.
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