higher tax bracket??

elicatdun

Please could someone tell me when I will start paying the higher tax bracket?

I see it's now >£36000 for 08-09 but does that include the £5435 personal allowance?

i.e. can i earn £36000+£5435=£41435 before i move into the 40% bracket?

Thanks.

meester

41435 is the normal amount yes

CLAPTON

If you have a company pension then the pension payments are tax free

jem16

elicatdun wrote: »

i.e. can i earn £36000+£5435=£41435 before i move into the 40% bracket?

If your tax code is 543L then yes.

If your tax code is less because of taxable benfits or you already owe tax then that amount is reduced. For example if your tax code was 270L then 40% tax starts at £36,000 + £2700 = £ £38,700.