Hello All,
Can anyone tell me at what point do we start paying 40% tax to Mr Brown. I have heard the figures between 29-30k mentioned so how does this work, I will assume for the examples it's 30K

1) 40% starts at 30k Earnings (eg £30001)
2) 40% Starts at 30k TAXABLE Earnings (Eg Tax code 411 = £4110 tax free) so 40% worked on taxable earnings means it starts at £34111 total earnings.

Anyone have a clue how the systems work. I hope the above makes sense, it does in my head but that does not say a lot.
I am sure the government make it difficult as possible to work out so they can get the max but any ideas would help.

P.S. If its option (1) i am having march & april off unpaid holiday

Thank-you for any help you can offer.