Brandane62:
Problem is, you will have paid 40% tax on everything you earned over £35k in tax year 2020/21, which is why your average tax paid is over 20%.
Why do people still not understand how ■■■■■■ income tax works? The number of people who seem to think either you pay 40% on everything or 40% above your personal allowance or 40% on whatever number they pulled out their arse just because you earn enough to put you in that bracket is truly shocking.
It’s simple beyond belief:
Personal Allowance: Up to £12,570 0%
Basic rate: £12,571 to £50,270 20%
Higher rate £50,271 to £150,000 40%
So only any income ABOVE £50,270 is taxed at 40%.