I got told today our shifts at work will be changing. so it made me wonder how it would affect how much tax I pay.
come the end of the year I will earn about 4000 over the basic rate of tax because of overtime meaning I will have to pay 40% on the £4000, is this correct?
my tax code is currently 106l
next year the shift will change and my basic will be £41800 with no overtime.
because I have earnt more the year before does this mean I will have to be on a lower tax code for the 2016 - 2017 year even tho I will not earn above the tax threshold this year?
iv been trying to work it out and looking online for a couple of hours trying to work it all out but its just confusing me even more.
basically im worried that I will be even worse off for a year because my tax code will change because they will assume I will earn over that amount again this year authough it will actually be less.
any help would be great.