INCOME TAX - 40%

Discussion in 'Army Reserve' started by morechanges, Sep 14, 2007.

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  1. Having just got promoted at my civi work and with bonuses I now fall in to the 40% tax bracket - I know lucky me.

    However I am concerned that my TA money which is over and above this will not get taxed at the higher rate and having seen threads in the past I'll get caught in lots of Tax Returns and repayments.

    Has anyone been able to get their TA pay taxed at 40% since JPA came in and if so how???

    It strikes me that it must cost the Government loads of money to process tax claims etc and recover money cos we are not taxed at the right level by MoD. Money that could be speant on equipment, better housing for our regular colleagues etc

    Any advice?

    Thanks
     
  2. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

    You could always give a copy of your tax coding to the pay office.
     
  3. Certainly have never been taxed at anything other than the basic rate since I joined the TA.

    However it is to our advantage as the money stops in our bank account for longer before HMRC recovers it on receipt of tax returns.

    I suspect that one of the reasons that this is not implemented is because in many instances it is the TA pay which will take an individual over the threshhold which will not be recognised when your civvy employer sends off an individual's details to the tax office.
     
  4. You can only be billed at 40% by one source, not both. Don't panic.
     
  5. As long as all your employment is taxed PAYE, it will all sort itself out in due course - you'll automatically be given an adjusted tax code to recover anything due unless it's loads of ££££.

    Having just 'volunterred' for a tax return by starting my own little business in addition to day job and TA, it's amazing how much you can claim back with a little research or good professional advice!
     
  6. A good accountant is worth is weight in Gold, I didn't pay tax from the moment I left the Army self employed until the silly moment I had to get a job again. A good few years that was as well.

    Shop around though and get recommendations if you can. The first guy did the VAT ok but tax was rubbish.
     
  7. A secondary employer generally isn't going to tax you at anything other than Basic Rate, because they don't know your main salary, and they're unlikely to be paying you enough to tip the Higher Rate. The TA is a good example of this.

    If you think you might get caught, then complete a self assessment form. Declare your underpayment of tax and send them a cheque.

    Bear in mind that once you receive a tax return, you're always going to - it doesn't go away.