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40% Higher Rate Income Tax for earning £35k


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I wounldn't have been so stupid to sell a load of gold at the bottom of the market like your idol though. :)

 

Indeed. You don't need to be good at maths to understand politics. However it is an advantage if you are Chancellor.

 

:hihi::hihi::hihi::hihi::hihi:

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From the BBC:

"The new threshold at which you start paying the 40% rate will be £35,001 of taxable income. This is in addition to your personal allowance. Taking this into account, you will pay the higher rate on earnings from £42,476".

 

So if your salary is £35k you will not be above the threshold. I think some of the posts on here are misleading in that respect. It was enough to confuse me anyway!

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  • 2 months later...
Perhaps the problem is that if you have to charge the customer an additional £14,200 in VAT, the customer goes elsewhere.

 

This is the problem we face. Once you have to start charging VAT, the customer goes elsewhere to a company that can offer the product at a cheaper rate...

 

It's a weird system and it really does benefit the non-VAT registered (Ebay sellers, small set up companies, etc).

 

They can sell part time to pay for a holiday a year while the rest of us have to struggle to compete.

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Doesn't the higher tax only apply to the amount over the threshold? So if you earned 35,500 you'd only pay 40% on the extra 500? (which was already being taxed at 20% anyway)

 

Yes, of course it does.

 

Someone earning 35k will pay nothing at 40% and will pay 35k - 7.5k (the personal allowance) at 20%

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