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Where Taxpayers and Advisers Meet

40% Tax to 20% Tax

wazzer1969
Posts:3
Joined:Sat Jan 19, 2019 3:27 pm
40% Tax to 20% Tax

Postby wazzer1969 » Sat Jan 19, 2019 3:32 pm

Hi
I currently earn £60,000 a year and pay 40 % Tax on part of my earnings, I was told that come 6th April 2019 the new TAX Fresshold for paying 40% tax will be only if you earn over £45,000 a year, anything less will be 20% Tax.
I currently contribute to my works pension and I understand that if I pay in £15,001 a year Salary Sacrifice into my works pension then I will not have to pay the 40% tax on what I earn because this will be £44,999 a year that I will be paying tax on at 20% is that correct??. Thank you.

D&C
Posts:61
Joined:Thu Dec 22, 2016 10:04 pm

Re: 40% Tax to 20% Tax

Postby D&C » Sat Jan 19, 2019 10:51 pm

I was told that come 6th April 2019 the new TAX Fresshold for paying 40% tax will be only if you earn over £45,000 a year, anything less will be 20% Tax.
Whoever told you that was wrong. Unless you have adjusted net income greater than £125,000.

To get a more useful response though you need to give us some basic information.

Where do you expect to be resident for tax purposes in the 2019:20 tax year?

What other taxable income do you have other than the wages from your job? Company benefits, rental income, savings interest or dividends for example.

wazzer1969
Posts:3
Joined:Sat Jan 19, 2019 3:27 pm

Re: 40% Tax to 20% Tax

Postby wazzer1969 » Sun Jan 20, 2019 3:49 pm

Answers:

Where do you expect to be resident for tax purposes in the 2019:20 tax year? = UK

What other taxable income do you have other than the wages from your job? Company benefits, rental income, savings interest or dividends for example =Only an ISA


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