How much do you have to earn before you pay 40% tax

A question about : How much do you have to earn before you pay 40% tax

Hi there,

Can someone please explain the tax boundaires. How much do you have to earn before you have to pay 40% tax, alos what is the other boundary for twenty percent tax.

I have a long commute to work but am not self employed, would I be eligble for any tax allowances for journeys etc.

Thanks in advance

X

Best answers:

• Your journey to work is not tax allowable.
  The boundaries for this tax year are
  £1-£2,230 = 10%
  £2,231-£34,600 = 22%
  £34,601+ = 40%
  This all starts after your £5,225 has been used up of course.
• This all starts after your Ј5,225 has been used up of course.[/quote]
  :confused: Hi Riq,
  WHat do you mean by this?
• You have a personal taxfree allowance of Ј5,225 which you can earn before you pay any income tax on it.
  Sorry, I am not the best person at explaining things. Thankfully I am not a teacher!
• Dont forget to keep your reciepts (Grrrr im going through mine right now!).............
• Hi i have a tax code of 233L/1 and have a company car.
  What does this mean for me?
• It means you have Ј2330 of personal tax-free allowances. probably because of your company car which is a taxable benefit so it reduces your allowances.
• i dont even want a company car but need it for my job!
• Company cars lower your free tax limit by 3K, soo...
  correct me if i'm wrong but...
  0-2330 - tax free
  2330 - ~4500 - 10%
  4500 - ~36900 - 22%
  anymore is 40%
  Those figures are approx! also as of april this year (i think) there are only 2 tax bands of 20% and 40%
• Hi regarding not wanting a company car and needing it for your job there is great little used trick for avoiding paying any tax on a company car but still getting full benefit for your work there are a few things you need to do to set it up as follows
  1 buy a car
  2 inform your company that you no longer use the vehicle for personal use
  3 leave the car at your place of work when you go home
  Simples
  It may seem bizarre but it is what ambulance fire and police drivers have been doing for years and they pay no tax for the use of the "company vehicle"
  However when you work out the costing you ll find that for the same cost as your tax your own car won't be quite as nice
  Lol