Hi HMRC Admin 32, thanks for your reply.
So, I have Marriage Allowance ( £1260) and also an approved Working at Home Expense (£312)
Therefore, my PTA would be £14,142, and that would mean that I would not pay 40% tax until I went over £51,142 overall income?
is that correct?
When I claim the difference in HMRC upper rate (45p) from my Company's actual rate (16p) as tax relief, Does the tax relief come off the next years Personal Allowance of is it added to the actual year it was accrued???
Does my Company Car class as "Income" and therefore the Benifit in Kind get added to my overall annual income?
Or does is it deducted from my personal Allowance?
As the answer will greatly affect if I pay basic rate or higher rate and the end of the year.
I hope someone can help me with a question on Personal Allowance and tax rates.
If my personal allowance is slightly bigger because of tax relief from such things as marriage allowance and and other expenses, does this then mean that I can make more over the 40% limit and not get taxed at the 40%
I know that the current rate is £12570 and that would mean I can make £37,700 before going into the 40% bracket (£50,270)
However, if my Personal allowance is £16,000, does it mean that I would still get taxed at 20% on the NEXT £37,000, even though it would mean that my total income is over the £50,270?
Or is it a case of that because my because my Personal Allowance increases, my 20% taxable amount will decrease?
IE, in my case above, because my personal allowance has increased by £3430, will I now be taxed at 20% on the first £34,270.
I suppose that basically the questions is does the £37,000 move up and down depending on your personal allowance or is it fixed?
Hope that makes sense