Ok question here, I get a base salary I think of around £28k but also get paid commission which I usually take £1k per month which puts me below the high rate tax threshold.
However last couple of months I have taken say £2k which if you look at over a year puts me into the high rate tax threshold. I’m trying to draw my commission as tax efficiently as possible, am I right in thinking if I took say £2k commission one month then I am taxed on a high rate basis and then if say I took £1k the following month then I would be taxed on the basic rate but would get taxed less because I had paid more the month before?
Hopefully that makes sense, what I don’t understand is why they don’t just tax you on a month by month basis so you get taxed nothing until you are over the personal allowance and then taxed at basic until you go over the basic rate rate limit.
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