What is the qualification required to be an income tax officer?

Income Tax Help Required Please?

• Hi hope someone can help, I recently moved in to a new role so got a lease car and a salary increase I am now however worried about tax, and the tax bands as I really do not understand them and hope someone can help! I have put my details below: My income is £35000. My personal allowance is £7475 My allowance has however been reduced to £5000 due to lease car (benefit in kind) So my questions: 1) I understand I will be in 20% bracket as my taxable income is £30000 2) When does the higher tax bracket come in? is it purely based on taxable income (ie salary minus your personal allowance) so if that was case I would have to earn £40000 before I was effected? 3) With above question in mind, is my personal allowance £7475 still or is it £5000 what figure do I use to gauge my taxable income in terms of the thresholds? My Tax code notice says “ a tax free amount of £5004” so this suggests to me I need to earn £40000 plus before I get 40% tax but my friend said this was not right and I purely have to earn £35000 (which I am now) before you get 40% tax. I have searched online and can find no confirmation on this and it is really bothering me... I hope someone can help me Thanks

• Answer:

  You pay tax on the amount after deducting the personal allowances. The tax bands work the same way. You pay BR tax on the first £35K of income liable to tax (after PA). Your personal allowance is 7475. It is reduced by the car benefit so that the correct tax is collected. When you calculate your tax you add together your income and benefits, then deduct the PA:- Pay £35000 + Car Benefit £2471 = Income £37471. Less PA 7475 = Income Liable to Tax £29,996 If you want it is black and white, follow this link: http://www.hmrc.gov.uk/incometax/basics.htm#6