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Tax query

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langara | 16:33 Fri 25th Feb 2011 | Business & Finance
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Hi, My husband gets a forces pension, works part-time and will soon be getting State Pension, if he continues to work part-time, does anyone know how much he can earn before going into a higher tax bracket.

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The first £6470 pa is tax free assuming the standard personal allowance applies.
The next £37400 pa is taxed at 20% assuming the standard allowances apply.
Above this income is taxed ata marginal rate of 40%. (There is a 50% rate but i doubt this will apply here.)
So based on these figures the answer to your question is £43870pa
The figures I gave relate to the current tax year. The figures for the new tax year starting in April 2011 can be found here
http://www.direct.gov...tReport2009/DG_183037

I'm assuming your husband is still under 65. If he's over 65 you'll note that the basic allowance is higher but you'd need to check at what point the higher 40% taxate kicks in as I'm not sure for over 65s
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Many thanks factor30, yes he will be 65 when receiving state pension, so will have to do some checking.

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