Tax Thresholds - Flexible?

Ocelot

My tax code was lowered due to savings interest.

I was always under the impression that the first 37,700 of taxable earnings was taxed at 20%, anything above 40%.

My tax spreadsheet based on this assumption matches the actual amount of tax I pay.

My current tax free allowance is 10,360, meaning I pay higher rate tax on income over 48,060, not 50,570.

BoGoF

Ocelot said:

My tax code was lowered due to savings interest.

I was always under the impression that the first 37,700 of taxable earnings was taxed at 20%, anything above 40%.

My tax spreadsheet based on this assumption matches the actual amount of tax I pay.

My current tax free allowance is 10,360, meaning I pay higher rate tax on income over 48,060, not 50,570.

And it's been said many times that your tax code operated during a year to try and collect tax from all sources  of income bears no relation to an end of year reconciliation that will include all your income but will give you the full benefit of personal allowance and basic rate band.

Only so many times it can be said.

Dazed_and_C0nfused

Ocelot said:

My tax code was lowered due to savings interest.

I was always under the impression that the first 37,700 of taxable earnings was taxed at 20%, anything above 40%.

My tax spreadsheet based on this assumption matches the actual amount of tax I pay.

My current tax free allowance is 10,360, meaning I pay higher rate tax on income over 48,060, not 50,570.

You are falling into the same trap as the op.

Having reduced tax code allowances does not change when higher rate kicks in.

You are comparing apples and pears.

If you were correct it would mean one of the many millions of State Pensioners with a job or (non State) pension would be taxed differently.  And they aren't.