Tax

[Kelly Jo]

Im trying to work out whether I'm a higher rate tax payer? I currently earn �35,000 basic but on top of this I get �1,200 Mortgage Subs �300 for Lunches and �2000 annual Bonus (approx)?

[Ethel]

Over �33000 and you are a higer rate tax payer:

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

[dzug]

You forgot to add the �5K personal allowance to that figure, Ethel.

You are (just) a higher rate tax payer assuming all your extras are taxable. �38,335 is the overall threshold this tax year.

[Kelly Jo]

Thanks - Maybe you could help me on another matter... I have been offered the chance to purchase shares through my company and I have been told it is of benefit to me as the amount I purchase comes directly out of my salary thus I do not pay 40% tax on them. As im borderline Im not sure how this can be. Am I not just saving basic tax on them - do you know how this is all worked out? Many Thanks!

[dzug]

It will be worked out through PAYE tax - the amount paid for the shares will be deducted from your salary before tax is calculated, so you will pay less tax.