rickmcfc
Well-Known Member
When does the 40% tax kick into effect? Does it kick in when you’ve accumulated the £50k, or is it worked out on a monthly basis? For example if you earn £20,000 a year, but one month did £4000 in overtime and bonus’ this months take home pay would easily put you into the 40% tax bracket if this matched for a year. So do you pay the 40% on anything above the average salary for a £50k job, or do you still pay the 20% for everything accumulated over a year regardless of you have a mega month, until you hit the £50k, then 40% after this?