When do i start paying 40% tax??
Answer:
You have a personal allowance of £5,035, lower rate tax band £2,150 and basic rate tax band £31,150.
So higher rate tax at 40% kicks in at income of £38,335 in the current tax year.
Here is good website how to check your salary deductions. I think 40% is after you earn £31.500 per year, something around that.
http://www.i-resign.com/uk/financialcent.
This site is the official government site for tax rates --> http://www.hmrc.gov.uk/rates/it.htm.
In 05-06, if you earnt over £32,400, you will have to pay 40% tax. This threshold rises to £33,300 in 06-07.
£38,335, but depends if make pension contributions
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