Income Tax

[Top Turkey]

When one's salary hits around �38k, am I right in thinking that income tax goes from 22% - 40%?

It seems crazy that one day you could be taking home about �400 per month less just by crossing a threshold.

TT

[Ethel]

Everything you need to know here

http://www.hmrc.gov.uk/rates/it.htm

Don't forget that you will only pay the higher level on money above the limit. You will still pay 22% on earnings between 2,151 - 33,300.

But if you are in the 40% band any interest on savings will also be liable to the higher rate.

[Fitzer]

Use the page here to input your salary and tax code for it to work it all out for you.

[sammd]

You won't be taking home �400 a month less. As Ethel said, up to �33,300 gets taxed at 22% and anything over �33,300 gets taxed at 40%, so if someone's on �38k, only �4700 of that will be taxed at 40%.

[Whickerman]

Ireland's rates are different, but it wasn't long ago i did a quarter hour overtime and came out a fiver worse off...