Higher rate income tax help needed
Discussion
LC23 said:
Assuming you are on PAYE and everything has been calculated correctly so far then when you start your new job, payroll will take into account the PAYE already paid for the year and adjust accordingly. So to answer your question, no, you won't continue to pay at the higher rate.
There are so many factors to take into consideration. Obviously the OP's last salary and future salary. The higher rate of tax is £37,401- £150,000. This chap may have been earning a £100K salary for the 6 months of the 2010/11 tax year so he'll still pay @ 40% for the rest of this tax year.Cheers,
J
Edited by Justin French on Saturday 2nd October 16:06
I was on PAYE, my salary was 'only' £30k but was working overseas for long periods of time and would get 100% of my wage on top of that tax free.
Coming back to the UK, salary wise im looking at £20-25k. My worry was that if I get a job I'd be stung by 40% on a modest wage.
YTD i've earnt £ 44k so just over the threshold.
As with anything tax related there seems no clear answer
Coming back to the UK, salary wise im looking at £20-25k. My worry was that if I get a job I'd be stung by 40% on a modest wage.
YTD i've earnt £ 44k so just over the threshold.
As with anything tax related there seems no clear answer
Justin French said:
LC23 said:
Assuming you are on PAYE and everything has been calculated correctly so far then when you start your new job, payroll will take into account the PAYE already paid for the year and adjust accordingly. So to answer your question, no, you won't continue to pay at the higher rate.
There are so many factors to take into consideration. Obviously the OP's last salary and future salary. The higher rate of tax is £37,401- £150,000. This chap may have been earning a £100K salary for the 6 months of the 2010/11 tax year so he'll still pay @ 40% for the rest of this tax year.Cheers,
J
Edited by Justin French on Saturday 2nd October 16:06
Edited by LC23 on Sunday 3rd October 09:20
dave144 said:
I was on PAYE, my salary was 'only' £30k but was working overseas for long periods of time and would get 100% of my wage on top of that tax free.
Coming back to the UK, salary wise im looking at £20-25k. My worry was that if I get a job I'd be stung by 40% on a modest wage.
YTD i've earnt £ 44k so just over the threshold.
As with anything tax related there seems no clear answer
ok your second to last statement clarified everything. You will be paying 40% ytd income is already at the 40% level for a whole years earnings so even if you earnt £1 for the rest of this tax year you'd pay 40%. Coming back to the UK, salary wise im looking at £20-25k. My worry was that if I get a job I'd be stung by 40% on a modest wage.
YTD i've earnt £ 44k so just over the threshold.
As with anything tax related there seems no clear answer
LC23 said:
Justin French said:
LC23 said:
Assuming you are on PAYE and everything has been calculated correctly so far then when you start your new job, payroll will take into account the PAYE already paid for the year and adjust accordingly. So to answer your question, no, you won't continue to pay at the higher rate.
There are so many factors to take into consideration. Obviously the OP's last salary and future salary. The higher rate of tax is £37,401- £150,000. This chap may have been earning a £100K salary for the 6 months of the 2010/11 tax year so he'll still pay @ 40% for the rest of this tax year.Cheers,
J
Edited by Justin French on Saturday 2nd October 16:06
Edited by LC23 on Sunday 3rd October 09:20
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