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Tax allowances/code & 40% band
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pinklady756
Posts: 1 Newbie

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pinklady756 said:Tax code 1359. The calculators show that allows earnings of 51299 without any falling into the 40% band.Looking to pay into AVC’s as income is just falling into 40%. But do we use 50270 or 51299 to calculate AVC contributions?
Would the same apply to marriage allowance?
You need to know the breakdown of your tax code to understand it properly. If your tax code includes Marriage Allowance (you being the recipient) then that does not actually change your higher rate threshold. It knocks £252 off your tax liability. If you remain eligible for Marriage Allowance.0 -
pinklady756 said:The tax code doesn’t include marriage allowance. But we would be able to apply if we got earnings low enough0
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pinklady756 said:Dazed_and_C0nfused said:pinklady756 said:The tax code doesn’t include marriage allowance. But we would be able to apply if we got earnings low enough
It may be he has expenses of ~1,000. Which would effectively make his basic rate threshold £51,270 rather than £50,270. But it's all guess work without knowing why his code is 1359L/T/M/N.0 -
pinklady756 said:It’s all expenses so £1015 on top the 12570 to make the tax code. So 40% doesn’t start until after 51299 I think
For the marriage allowance does it still need to be under 50270?Second point - No. It would be £51285. Same reasoning as first point.Perhaps you could clarify pension contribution amounts and method?0 -
pinklady756 said:Nomunnofun1 said:pinklady756 said:It’s all expenses so £1015 on top the 12570 to make the tax code. So 40% doesn’t start until after 51299 I think
For the marriage allowance does it still need to be under 50270?Second point - No. It would be £51285. Same reasoning as first point.Perhaps you could clarify pension contribution amounts and method?
But he has a lower taxable income figure to start with as a result of using salary sacrifice.0
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