UK 40% Tax

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.

hi grabber 01 :)
try this link ,might help you.
regards mark:)

tax

it's more like (i fink)

30k

33k-4110 =25890 x22% =5695 tax to pay

40k

30k -4110=25890 x22% =5695
10k x40% =4000

5695+ 4000 = 9695 tax to pay..


piss poor maths but this is my understanding...;-/

i just know in my gut it's not 30000+4110...no way would any g.ment be that generous..

cheers

richard

Hi Guys,
Just had a look at Marks link and this is how i read it. If anyone disagree's can you let me know. Not thay it's likely to affect me this year !!!!
22% up to £30,500 40% £30,501 upwards TAXABLE INCOME

Therefore working on my tax code "411" i can earn £4110 tax free therefore to get to £30,501 taxable income i actually need to earn £34610 before going onto 40% tax

Does this sound right or am i just talking ****ocks

Regards

Raymond

Hi all

As I understand it, you pay at 22% up to £30500, then everything you earn over that amount is taxed at 40%.
Rdocwra, I think that the tax office allows us $4110 before we start paying tax, but it is taken into account, so you will start paying 40% at 30500K, not 34610K. I might be wrong there, but knowing our wonderful civil service, I doubt it! ;-)

works like this in aus... first 6k is tax free. so if i earn 20k this year i only have an obligation to pay tax on 14k. then you minus your tax deductions ie. sunscreen, workboots, safety glasses, tools etc. and you might end up wth a say 13k taxable income. so you would pay roughly 2.2k tax.

maybe a better explaination below...

a. work out your tax free threshold [6k]
b. minus above from your yearly income [20k - 6k = 14k]
c. minus applicable tax deductions (legit work related expenses) [14k - 1k = 13k]
d. taxable income = 13k

Aussie taxation details below, non-resident taxes are higher
$0 – $6,000: Nil
$6,001 – $20,000: 17c for each $1 over $6,000
$20,001 - $50,000: $2,380 plus 30c for each $1 over $20,000
$50,001 – $60,000: $11,380 plus 42c for each $1 over $50,000
Over $60,000 $15,580 plus 47c for each $1 over $60,000

Individual tax rates for aus found here: http://www.ato.gov.au/individuals/ml.asp?5464

How works the system in Belgium:

A technician earns 15 €/hr (gross). From this 15 €, there is an immediate deduction for taxes, of +/- 5 €.
The boss has to pay to the government Gross wage (15 €) x 1,85 (+/-) or 27.75. With this, state finance (anyway, the try it) the social system.

So from the 27,75 € the company pays to the state, the technician gets 10 € (almost 1/3)

Company has to charge at least gross wage *2.3 to cover all expenses (investments on tools and building) or +/- 35 €.

So if a technician wants a modification/reparation in his house (plumbing, electricity..) and he will do it legally, then he has to pay 35 €/hr where he earns 10 €/hr himself. (x 3.5)
This means that if there has to be done a job with 2 man for 2 days (+/- 40 hors) his whole monthly wage is gone.

Are these figures also common in other countries?

You can imagine why there is in Belgium a big market for jobs beside the normal (say official) hours in a black circuit.

we have a PAYG (Pay As You Go) system in australia which is how most employed people whould be paid i would imagine... basically it means you pay a certain amount tax each week based on your GROSS wage employers do this on your behalf and give you your NET wage (get tables off government to big to print here...) so basically the governent here takes and keeps all your taxes it is up to you to lodge a tax return and provide evidence ie. recipts of your deductions etc to get over paid tax back.

we charge $66 an hour or minimum service charge, which means i make my boss rich lol as i get $7.80 as 2nd yr apprentice... (around €3.90 per hour) which is crap really since i install systems and fix some breakdowns on my own basically 70% time.

Quote:

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we charge $66 an hour or minimum service charge, which means i make my boss rich lol

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since sometimes you can do 3 or 4 jobs in an hour if your lucky, not so much with installs but we charge more per hour

also we use a Goods and Services Tax system so everyone gets charged a flat 10% on any good or service performed or bought by them, exept the state governments here well nsw anyway are having a hard time letting some of the old crippling taxes go which is supposidly un-constitutional as the australian commonwealth law overrides state law (exept if it has to do with bleeding the hearts dry through taxes obviously lol).

3 or 4 jobs per hour!!!!!!!!!!!!!!!!

'that's pretty fancy shootin boy'


cheers

richard

well 2 and 3 if your lucky.. just like domestic thermo changes, or you show up and someones noodled with a thermo or pressure control etc...

Is social system, tax system +/- equal in the UK, Australia and New Zealand. Last two are (where?) also British I think (I was not so good in history)

This is a link to our Accountants home page - lots of upto date info regarding taxes etc.

http://www.towerhouseassociates.com/...tes/tc2003.htm

I don,t mind paying tax BUT

There should be a tax allowance on overtime.

Regards bernard