UK Income Tax Question

Old-Dutch

Does anybody know why the threshold for people paying income tax through PAYE is £37k for 40% tax, when it is over £50k for people paying income tax not through PAYE? It’s absolutely scandalous.

Rates are here:

PAYE:
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023

Income Tax rates:
https://www.gov.uk/income-tax-rates

mono-stereo

You need to add your personal allowance of £12,570 on to that.

mono-stereo

ie 40% starts at £50,271

-si-

You are subtracting £12570 from £50270, dutch. You have a tax free earnings allowance before you start paying income tax at basic and then higher rate.

-si-

Lol, thanks mono. I read that, answered the phone before hitting post reply. All sorted in the meantime!

mono-stereo

-si- i think i was out by a quid anyway 😆

Smallman1

Tax eh?

Bloody hell!

mono-stereo

Smallman1 Assume your Dad’s a non-domiciled individual?

Amps

mono-stereo Assume your Dad’s a non-domiciled individual?

Senior seen with his tax team at the end of the financial year:

Smallman1

Never assume Mono.

IT MAKES AN ASS OUT OF U AND ME.

mono-stereo

I’ll take that as a yes then. Tell him to pay his fucking taxes.

Old-Dutch

Ah ok.

Whichever dick head wrote their website needs a massive kick in the bslls as that is not clear at all

Hursty

Old-Dutch To be fair it says before the table:

“The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.”

I must admit, I would also skim this part and go straight to the numbers 😆

benson

Not all of us have 12k personal allowance which is why it’s worded like that I think

Old-Dutch

Yeah but it then goes onto refer to ‘earnings’. Surely all money you earn is classified as earnings, whether it is taxable or not?:

English and Northern Irish basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate 40% on annual earnings from £37,701 to £150,000