Timeline for UK Tax Code Adjustment Effect on Higher Tax Bands
Current License: CC BY-SA 4.0
5 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Aug 29, 2023 at 13:33 | comment | added | Mutation Person | And, presumably, that calulcation becomes a little more complex if you are close to a tax band. Say I earned £150,500, then allowance would have to account for 46% of 500 (230)+ 41% of some in the lower band (~=439), making the allowance adjustment 939 in this instance? | |
| Aug 29, 2023 at 13:29 | comment | added | Mutation Person | And to take it a step futher, if I were a 46% tax payer, then to raise £410 then they have to reduce my allowance by £(410 / 0.46) ~= £891.30 | |
| Aug 29, 2023 at 13:24 | vote | accept | Mutation Person | ||
| Aug 29, 2023 at 13:23 | comment | added | Mutation Person | Thanks! So, the effect on the allowance is at your top band. You always pay 0% on the first £12,570 (or whatever it is in future) regardless of tax code. To turn the above on its head, if I earned £55K the government wanted to claw back £410 pounds, then they would do so by reducing my personal allowance by £1000? | |
| Aug 28, 2023 at 18:49 | history | answered | gnasher729 | CC BY-SA 4.0 |