Tax return question
 

Just doing my accounts for the IR.

Can anyone tell me if the 22%/40% tax bracket is applied to gross income before expenses/deductions or if its applied after you've deducted your allowance and expenditure.

Take all your expenses and costs out first. Then subtract your tax free allowance. You pay 10% on the next £1000, 22% for the next bit (27k or something) and 40% of the rest.

Thanks, thats good news then :)

Is the 40% bracket £30,500 now or something?

zero band = 4615
10% on next 1960
22% from 1961 to 30500
40% thereafter

remember to take NI contributions and pension contributions out as well as costs and expenses

I didnt think you could put NI down as an expense. Good reminder on the pension though. I have an accountant, but he seems to have disappeared, so I will be getting another one, this is just for me to estimate my tax bill.

Thanks for your help again.