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How does the tax system apply the 40% bracket?
accountinglads
How does the tax system apply the 40% bracket?
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accountinglads Junior Member
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Starting from £50,271 to £125,140 of annual income, you would pay 40 tax threshold
for the current year. You only pay a 40% tax rate on the income in this bracket. Suppose you paid £60,000. Only the part above £43,675 (£16,325) is taxed at 40%. Only a part of your salary is taxed at 40%. Good tax planning methods can reduce your income tax bill.


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