Tunnocks wafer
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RE: Tax code changes and higher rate tax
Hi, Thanks for the prompt reply but this doesn’t answer the question. I know the marriage allowance reduces my tax bill but it does not increase my personal allowance (or higher rate tax threshold). However what is the effect of the reduction in my tax code for unpaid tax for a previous year? Does this reduce the personal allowance and hence the higher rate threshold? In my example would a tax code reduction of £742 reduce the £43663 higher rate threshold (in Scotland) by £742 also? -
Tax code changes and higher rate tax
Hi, I have had notice that my tax code has changed and I would like to know if this changes the threshold at which I pay higher rate tax. As an example, my tax code is reduced by £742 due to unpaid tax from previous year but increased £1200 from marriage allowance. My resulting tax code is S1302M. So what is my new threshold for being a higher rate tax payer (in Scotland)? Has it gone up or down with these adjustments?