End of year pay

info13

Hi all,

So I’m approaching my end of year pay on December 18th I’m a short step away from passing my tax bracket @20%

This will be passed on my December wage does that mean that automatically all I earn above the 20% mark will be taken at 40% then straight from that wage?

Sorry for the silly question but I’m no good when it comes to taxes etc...

Seve OB

info13 wrote: »

Hi all,

So I’m approaching my end of year pay on December 18th I’m a short step away from passing my tax bracket @20%

This will be passed on my December wage does that mean that automatically all I earn above the 20% mark will be taken at 40% then straight from that wage?

Sorry for the silly question but I’m no good when it comes to taxes etc...

Are you getting a pay rise?

MartyMcFly84

You would not get taxed on everything you earn @40% . You will only get tax at 40% at the amount you earn over your standard rate band

Example for single person earning 35,000 in 2018

SRB 34,550 @ 20% = 6,910
Balance 450 @ 40% = 180

Tax : 7090

Then non refundable tax credits would be applied to reduce this further. Depending on your personal circumstance.

Single Person - (1650)
PAYE - (1650)

info13

Thanks for that.

My tax band is 43,500 so basically anything after this will be automatically taken @40% out of my wage for December correct?

Seve OB

info13 wrote: »

Thanks for that.

My tax band is 43,500 so basically anything after this will be automatically taken @40% out of my wage for December correct?

Your band is cumulative.
If you are just paying 20% all year it should be no different (unless you have made changes) in the last few weeks.

The only way you would go over the band and into 40% is if you get paid more in the last periods. So if you haven't go an increase and assuming you are on salary rather than a fluctuating rate, there should be no impact on you. Of course if you get a bonus of maybe some overtime or could kick you into the higher band.

However anything you earn in the higher band is all that will be taxed at the higher rate. Going into the higher band will not trigger all your earnings for the year to be taxed at the higher rate.

info13

Thanks for that just trying to work it out before Xmas is all ðŸ‘ðŸ»

Seve OB

info13 wrote: »

Thanks for that just trying to work it out before Xmas is all Ÿ»

if you want to pm me some details i should be able to work it all out for you