New Tax Code for a New Tax Year - 1000L (2014-2015)

[BetterTAX]

Wasn't sure where to post this, but it is a sort of catchall!

I did do a blog on the new tax code, so please read it for more details.

Basically, the new code from April will be 1000L. If you have anything other than that and you think you are on basic rate tax, then please get it checked out.

You don't want to be paying too much tax, or worse, paying too little and have to pay big chunks back!

 

[scottie5]

Whats the 40% threshold at for next year @BetterTAX

 

[BetterTAX]

@scottie5 40% on annual earnings from £31,866 to £150,000... you should be so lucky! and just in case, it's 45% above £150k

 

[johniosaif]

Is that on profit as opposed to earnings @BetterTAX

 

[BetterTAX]

If you're self employed or a sole trader then yes, you pay tax on your net profit... the difference between what you spent (expenses) and what you turned over (earned).

 

[scottie5]

@scottie5 40% on annual earnings from £31,866 to £150,000... you should be so lucky! and just in case, it's 45% above £150k

Its about time they raised that threshold to a fair level, 40% shouldn't kick In till at least 50k in my opinion its set ridiculously low.

 

[johniosaif]

I think first £250k should be at 5 percent

 

[owls]

Tax !! isn't that what poor working class people pay.

 

[BetterTAX]

Its what everyone pays unless you're Chris Moyles or Jimmy Carr!

 

[carlos]

Wasn't sure where to post this, but it is a sort of catchall!

I did do a blog on the new tax code, so please read it for more details.

Basically, the new code from April will be 1000L. If you have anything other than that and you think you are on basic rate tax, then please get it checked out.

You don't want to be paying too much tax, or worse, paying too little and have to pay big chunks back!

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So I work PAYE at basic rate and my new code will be different to 1000L is that bad????

 

[Rossi46]

So when you fall into the 40% bracket there will still be a further 9% for NI on your earnings over £10000?

 

[scottie5]

Yes

 

[BetterTAX]

Sorry, yes, it means that you don't get taxed on £10000 of your basic earnings (worked out over a year).

If you're PAYE and your tax code is not 1000L it could be because you have other income sources, child benefit for example, or 2 jobs maybe.

It could also mean that in the previous year you underpaid tax, so HMRC are clawing it back by way of your tax code. Maybe you did a tax return last year, got a refund and HMRC have decided that the expenses you claimed will be that every year - a silly idea they have! Who can tell what expenditure you'll have from year to year - which is why its best to get the code adjusted back to basic and do a tax return at the end of year.

 

[leebo02]

Its about time they raised that threshold to a fair level, 40% shouldn't kick In till at least 50k in my opinion its set ridiculously low.

its actually come down this year,, was set at higher amount last year, :RpS_thumbdn::RpS_mad::RpS_angry:

 

[scottie5]

its actually come down this year,, was set at higher amount last year, :RpS_thumbdn::RpS_mad::RpS_angry:

Yeah by about £150 seems to creep down a little every year its proper wrong.

 

[Wezly]

So when you fall into the 40% bracket there will still be a further 9% NI on your earnings over £9000 ish?

Don't forget the vat that your collecting! With that in mind, you don't get much out of the pound that you charged the customer.

 

[leebo02]

Yeah by about £150 seems to creep down a little every year its proper wrong.

yeah,, you'd think it would go up each year