tax brackets when doing overtime

[Twinkle17]

We have been offered overtime this month but I dont want to go over to the next tax bracket as it wont be worth me doing any...

How can I find out at what amount the next tax bracket is? I just need a figure of what not to go over.....

Many thanks

[harrabarra]

Next bracket is �399 per week over that you pay 40% tax

[craft1948]

are you sure harra...I get more than that and pay 20%?

[craft1948]

on the uk.gov site it says 40% tax starts at over �37,400 p.a.

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

[Rollo]

Not worth your while if you have to pay tax at 40%?

Gosh!
.

[Twinkle17]

Thanks all

x

[dasherman]

�37,400 = �719 per week

[kags]

assuming you have a normal tax code of 647L, the 40% tax rates applies to earning of over �843 per week. You only pay 40% on the excess over this amount, not the whole lot. Once you get to this level of earnings, National Insurance drops to 1% on the excess, so you effectively take home 59% of everything you earn over �844 per week. Only you cand ecide whether that's not worthwhile.

[jedimistress]

If you are just on overtime for one month, you are probably unlikely to pay 40% tax, as the figure is cumulative so depends on what you have earned for the whole year. It is not a weekly figure as such. You may earn over the weekly threshold quoted here, but as you are taxed based on a year, the it could be you do not earn enough that year to be taxed at the higher rate. Any overpayments of tax made during the month overtime, will be reimbursed if you do not meet the target for being taxed at 40% for the next month if that makes sense to you.

[Skyline D]

If you have to ask about going into the next bracket for a single month then it isn't going to affect you unless for some reason you are on a Month 1 tax code. If you have a normal tax code you'll be unaffected as jedimistress has already tried to explain.

[Twinkle17]

Thats great info....Thank you everyone

x