Most people think of the "40 tax threshold" as the point where a 40% tax rate applies. In the UK for the upcoming 2024/25 tax year, any earnings above £50,270 are subject to a 40% tax rate, until earnings reach £125,140. Should income be above this level, the 45% rate can be paid. Reaching or getting close to this threshold is particularly important for your financial plan. Thinking about the threshold can guide you in controlling your income, donations and finding ways to decrease what you pay taxes on.