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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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I think I paid too much tax in 2014/15. My earnings were £222902

Customer Question

I think I paid too much tax in 2014/15. My earnings were £222902 and I paid £7574 in NI and £86,140 in tax which seems high.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You would be in the 45% tax bracket, you would loose your personal allowance and you would pay 2% NI on earnings above above the upper income limit. On 222902 your tax would be 31685 @ 20% [6337], 150000 @ 40% [60000] and 41217 @ 45% [18548]. That total is 84885 so you have indeed overpaid tax, but HMRC will refund the over payment when you submit your self assessment tax return. The tax tables tend to be inaccurate at high salary levels. I calculate you NI on employed rates as being excessive, but it will all come out in the wash when you self assess. You can reduce your exposure to Income Tax by making contributions to a Private Pension Scheme up to the maximum, including any made by your employer, of 45000 in the 15/16 tax year. This relief is available at the highest rates of tax. I do hope that my reply has been of assistance and shed some light on your position.