Crosswords1 min ago
Higher tax bracket
3 Answers
Hi, could anyone tell me how much you can earn up to, before going into the higher tax bracket? Thanks in advance :D
Answers
1 to 3 of 3
Best Answer
No best answer has yet been selected by purplelily. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
Currently �38035, from which the standard personal allowance of �5035 is deducted, leaving �33000 all taxable at the lower or basic rate. Every pound of income over this level will be charged at 40%. This includes all income, including taxable benefits, pensions and investment income - although the higher tax rate for share dividends is slightly less.
hi
the information seems to be wrong, the threshold is �33,300 for the 06/07 year. any amount over this is taxed at 40%.
the personal allowance is �5035 for this year.
therefore the ist 2150 is at 10%, the next lot up to 33300 which is 31150 @ 22%. an additional funds over �33300 is taxed at 40%.
this may not look like sense ot you but might help: http://www.mypersonalfinances.co.uk/data/taxtables/itr.asp?SiteID=
Savings and non savings (e.g salary, trading income) and dividends are taxed at different rates and will need to be grossed up.
This is coming from a CTA student :)
Hope this helps.
1 to 3 of 3
