vallumlj

I got paid this month and paid 40% on my commision. I thought you only paid 40% once you have earned over 35k. Seeing May was the first tax year off the month I am a long way from that.

Any help would be good.

Thanks

davyboy

http://tinyurl.com/42xnf9c

speedking

Maybe that's why you pay so much

HMRC

Fantom

Tax works on a cumulative basis. Therefore taxwise it is assumed that your first months pay will continue for the rest of the months.
If you earn a lot less next month you should find a nice reduction in tax.

Kev_turbo

they assume you earn your monthly income x 12 or to put it another way you can earn 35000/12 per month (the £35k is your figure, I cant be ar$ed to look it up) before 40% tax. If you did £4k this month the assumption is you will earn £48k in the year so need to pay some 40% tax. If next month you get krap salesman of the month award and earn £3.76 you will be entitled to some tax back.

It will all come out in your self assessment at year end or be sorted by personnel

Kev_turbo

beaten to it

ChefDude

Absolute class

Hysteria1983

Excellent!

LEO-RS

The answer is on earnings over £42,475 (£35,000+ Personal Allowance of £7,475)

However you can earn quite a bit more than this and still not pay 40% tax if you pay into a pension or a salary sacrifice scheme for childcare vouchers etc as those are exempt.

SpecDscooby

10/10....lets see if he does it

vallumlj

Thanks for the help. Will i get the tax back in my wages or do I need to do anything

LEO-RS

Assuming you do not earn more than £42,475 over the year, the tax will adjust accordingly over the remainder months so that you are recompensated.

tony de wonderful

I'm sure pslewis know more than anyone here about paying high rates of income tax, after all he earns SO much.

fast bloke

Argh!!!!! TDW is correct. PSmsL is the correct person to ask about tax questions. He has been dreaming of breaking through his personal allowance for many years now.