Tax query...

bloodline76 · 25 Mar 2014 at 19:59

Could someone explain please

Basic tax rate
20% on annual earnings above the PAYE tax threshold and up to £31,865

Higher tax rate
40% on annual earnings from £31,866 to £150,000

Does this include the £10,500 tax free part so essentially I would have to earn £41k before the 40% kicks in? Or am I taxed after £31,865 at 40%?

Thanks

bloodline76 · 25 Mar 2014 at 20:18

What about this quote: Budget 2014: Osborne Raises 40p Tax Threshold to £41,865

That suggests you have to earn £41k?

bloodline76 · 25 Mar 2014 at 20:40

Ok thanks. That's how I understood it just wanted to make sure.

thanks All!

bloodline76 · 26 Mar 2014 at 05:10

So what is the answer again? lol