Tax Thresholds

[DenW]

I have recently had a salary increase to �35K.

I also get in excess of �5K overtime payments & bonus etc.

Am I still in the 22% Tax bracket or does my recent increase take me up to 40% (surely it doesn't)

[Hawkwalk]

over �33,300 and you pay 40%

[CheekyChops]

You are definately in the 40% bracket - see here and scroll down a bit.

[Oneeyedvic]

Just to make it clear - you will pay the 22% on �33,000 and 40% on anything you earn above that (�7,000 in your example) and NOT 40% on the whole amount

[Black Noir]

Your total approx earnings are therefore �40,000, after taking into consideration your personal allowances �5225 (for 2007/08) you have taxable income of �34,775 for the year.

As you will see from the attached link the higher rates threshold for this current tax year is �34,600 - so yes you will pay a little bit of tax at 40% but this can be reduced if you have any covenanted payments to charity , pension payments, or expenses you have incurred personally which are wholly in connection with your employment, for example.

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

[DenW]

Belated thanks for the answers guys.

This helps.