{"id":2292,"date":"2013-12-10T00:00:00","date_gmt":"2013-12-10T00:00:00","guid":{"rendered":"http:\/\/dev14.p-2-p.co.uk\/uncategorized\/the-60-income-tax-band\/"},"modified":"2013-12-10T00:00:00","modified_gmt":"2013-12-10T00:00:00","slug":"the-60-income-tax-band","status":"publish","type":"post","link":"https:\/\/hebblethwaites.com\/index.php\/the-60-income-tax-band\/","title":{"rendered":"The 60% Income Tax band"},"content":{"rendered":"<p>\n\tAccording to HMRC the highest rate of Income Tax is 45%. This will apply to anyone with income over &pound;150,000. Income below this amount is taxed at 40%, or a combination of 20% and 40%.<\/p>\n<p>\n\tHowever, if your income marginally exceeds &pound;100,000, for every &pound;2 your income exceeds this amount you will lose &pound;1 of your personal tax allowance. For a person under 65 years the personal allowance for 2013-14 is &pound;9,440. Consequently, if your income rises to &pound;118,880 you will lose your personal allowance.<\/p>\n<p>\n\t&nbsp;The tax payable on this marginal amount of &pound;18,880 is &pound;18,880 x 40% plus &pound;9440 x 40% &#8211; in total &pound;11,328, or 60% (11,328\/18,880 x100) of your income earned between &pound;100,000 and &pound;118,880.<\/p>\n<p>\n\t&nbsp;If you estimate that your income will marginally exceed &pound;100,000 in this tax year you may be advised to consider your options. There are two strategies you could employ:<\/p>\n<ol>\n<li>\n\t\tReduce your income, or<\/li>\n<li>\n\t\tIncrease your tax allowable deductions<\/li>\n<\/ol>\n<p>\n\t&nbsp;<strong>Reduce your income:<\/strong><\/p>\n<ul>\n<li>\n\t\tYou could discuss a salary sacrifice arrangement with your employer: exchange salary for unpaid leave or a combination of tax free benefits.<\/li>\n<li>\n\t\tDefer bonuses and\/or dividends payable towards the end of the tax year until after 5 April 2014. Depending on the numbers, this may defer the problem to the next tax year, or produce a permanent tax saving &ndash; don&rsquo;t forget, gift aid payments can be carried back a year in many cases.<\/li>\n<li>\n\t\tTake a close look at the taxable benefits you receive. For instance if your employer pays the fuel costs to cover private use of a company car consider reimbursing the private fuel cost.<\/li>\n<\/ul>\n<p>\n\t&nbsp;<strong>Increase your tax allowable deductions:<\/strong><\/p>\n<ul>\n<li>\n\t\tIncrease charitable donations.<\/li>\n<li>\n\t\tIncrease pension payments.<\/li>\n<li>\n\t\tIf you are self-employed consider investment in plant or equipment and take advantage of the &pound;250,000 Annual Investment Allowance.<\/li>\n<\/ul>\n<p>\n\tIt&rsquo;s worth giving the matter serious thought as you will potentially save 60% of any cost in reduced Income Tax payments. The above suggestions are not the only strategies you could employ. If you would like to organise a meeting to discuss your planning options in more detail please call.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>According to HMRC the highest rate of Income Tax is 45%. This will apply to anyone with income over &pound;150,000. Income below this amount is taxed at 40%, or a combination of 20% and 40%. However, if your income marginally exceeds &pound;100,000, for every &pound;2 your income exceeds this amount you will lose &pound;1 of [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-2292","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/2292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/comments?post=2292"}],"version-history":[{"count":0,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/2292\/revisions"}],"wp:attachment":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/media?parent=2292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/categories?post=2292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/tags?post=2292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}