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June 29, 2022
Question

How do you know quickbooks standard is applying the 40% tax bracket

  • June 29, 2022
  • 1 reply
  • 0 views

I have set up a spreadsheet to check the higher level of tax is being applied to an employee, when I input all details from an employees payslip for last month onto the spreadsheet in order for the spreadsheet to be the same as the payslip his entire salary is being applied by the 20% tax bracket.  This employee earns £44070 a year, therefore £6370 of this should be in the 40% range, I can't see that this is being applied.  Am I missing something?  Does quickbooks only start applying the 40% range once the year to date figure reaches the threshold for the 20% bracket?

1 reply

June 29, 2022

Hello Pip3, Thanks for reaching out to the Community about the salary for your employee not calculating correctly for the tax bracket. Is that for the current tax year as the thresholds have changed for the 40 percent range the basic  20 percent rate is £12,571 to £50,270 see here