40% Bracket

rusty_1970

Hi, My tax code changed to 1193L, my question is do I pay 20% tax from £11,930 - £37,700 & therefore 40% tax threshold kicks in from £49,630 or do I pay 20% tax from £11,930 - £38,340 & 40% tax threshold remains at £50,270 - Please can someone clarify, thankyou in advance 

Dazed_and_C0nfused

Overall your tax code doesn't change the basic rate threshold.  It's just an attempt to collect the correct tax during the year.

Your employer will give you the full £37,700 basic rate band.

Bah_humbug

0% tax to 11930
20% tax on 11931 to 49630 ( e.g.37700)
40% tax 49631   onwards.

If you earn less taxable pay than 100000 that's the maths. Over 100k your 11930 tax free allowance starts to reduce.