Higher rate tax

[missrandom]

Hi, my husband has just got a new job with a much higher salary than before, and he's now going to be on higher rate tax. Could anyone tell me wether he will have to pay 40% on the whole of his wages or just the bit that goes over the threshold?
Thanks

[Ethel]

Just the bit over the threshold

[hev]

First 5435 is tax free then its 20% up to 36000. Everything above 36000 is 40%

[missrandom]

oh thank you. I was really worried and thinking we wouldnt be much better off, but thats great. Thanks x

[vicars]

A lot of people think they will be worse off being higher rate tax payers but this isn't true. As an aside, as he is going to be a higher rate tax payer why not make sure he is paying what he can into his pension to get the most out of it? This way for every �100 going in, �40 is paid by his tax and �60 by him. Worth looking into.

[missrandom]

thats a good idea thanks I'll look into that. He's also able to buy shares and the company match what he buys, so we'll definately look into both of those things.
thanks