Question: What are the tax band widths? How do you know if you have to pay highter rate income tax?

Hello daughter in distress - probably not in any distress at all - probably highly organised with a question like this:

Do you know how much you have to earn before you are charged 50% tax?

Here are the governement tax bands. Further information can be found on:
www.hmrc.gov.uk/rates/it.htm

Income Tax rates and taxable bands:

Income Tax rates and taxable bands Rate 2008-09 2009-10 2010-11

Starting rate for savings: 10%*
2008/9-£0-£2,320....2009/10-£0-£2,440....2010/11-£0-£2,440

Basic rate: 20%
2008/9-£0-£34,800....2009/10-£0-£37,400....2010/11-£0-£37,400

Higher rate: 40%
2008/9-Over £34,800....2009/10-Over £37,400....2010/11-£37,401-£150,000

Additional rate: 50%
2008/9-Not applicable....2009/10-Not applicable....2010/11-Over £150,000

* From 2008-09 there is a 10 per cent starting rate for savings income only. If your non-savings income is above this limit then the 10 per cent starting rate for savings will not apply.

The rates available for dividends for the 2008-09 and 2009-10 tax years are the 10 per cent ordinary rate and the 32.5 per cent dividend upper rate. For the 2010-11 tax year, as well as these rates there is a new dividend additional rate of 42.5 per cent

Hope this helps,

Jill