SPLIT TAX YEAR IMPLICATIONS ON UK TAX

[surfersj]

I am aware that when moving from the UK to Australia my final UK tax obligation for that year allows me to earn the full tax free personal allowance of £12,500   Even in a situation where I am potentially leaving the UK a few months into the tax year.

However can anyone clarify if the same situation applies to the higher rate threshold of £50,000 i.e. am I allowed to earn up to this amount at the 20% tax rate before the 40% tax rate kick in.

So, theoretically, I could leave the UK for OZ at the end of June and would be able to maximise my earnings for this 3 months and be allowed to earn £50,000 before the 40% tax rate kicks in? 

 

[Ken]

On 24/05/2019 at 22:26, surfersj said:

I am aware that when moving from the UK to Australia my final UK tax obligation for that year allows me to earn the full tax free personal allowance of £12,500   Even in a situation where I am potentially leaving the UK a few months into the tax year.

However can anyone clarify if the same situation applies to the higher rate threshold of £50,000 i.e. am I allowed to earn up to this amount at the 20% tax rate before the 40% tax rate kick in.

So, theoretically, I could leave the UK for OZ at the end of June and would be able to maximise my earnings for this 3 months and be allowed to earn £50,000 before the 40% tax rate kicks in? 

 

Yes, that's how it works. Neither the nil rate nor the basic rate band are pro-rated in the UK. You should however be aware that PAYE is pro-rated so what will turn out to be too much tax will be withheld from your payslips (since it's calculated on the assumption that you'll work for the whole year) but you'll get it refunded.

[surfersj]

Thank you Ken, that was very helpful.