Norwegian tax
Dutch taxnew tax codes from April 2010
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From April 2010 all employees are liable to a tax rate of 50% if their income exceeds £100,000.
In reality tax rates will be up to 61% in some circumstances.
The basic rules rates that your basic tax allowances of £6,475 will reduce by £1 for every £2 that your income exceeds £100,000.
For instance if the Inland Revenue believe that your income for 2010/11 is likely to be £110,000 then your tax code will be reduced from 647L to 147L.
This is because if your income is estimated to be £10,000 above the threshold this means a £5,000 reduction in your allowances to £1,475 = tax code of 147L.
The reduction is all based on the Inland Revenue's estimate of your income, and if you receive a bonus your tax code will be wrong, and you will have underpaid tax. Please contact us immediately if you want us to resolve the matter with the Inland Revenue.
If your income is above £112,950 then your basic allowances will drop to zero.
This change will not affect your other allowances for other deductions of benefits in kind, but undoubtedly this will mean that many taxpayers will be paying the wrong amounts of tax.
For more information, visit the Inland Revenue website.