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Evans Accountants is the trading name of David H Evans Ltd, Company registered number: 4666707 Registered in England and Wales. Registered by the Institute of Chartered Accountants in England and Wales to carry out company audit work.

DON’T LOSE YOUR PERSONAL ALLOWANCE…

March 5, 2019

 

 

For every £2 that your adjusted net income exceeds £100,000, the £11,850 personal allowance is reduced by £1. This results in an effective personal income tax rate of 60%.

 

Pension contributions and Gift Aid can help to reduce adjusted net income and save tax.

 

The restriction applies between £100,000 and £123,700 adjusted net income.

 

Another way that you could avoid this trap would be to agree with your employer to sacrifice some of your salary in exchange for a tax-free benefit in kind.

 

These rules changed from 6 April 2017 but employer pension contributions, bicycles, and employer provided childcare would continue to be tax effective.

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March 5, 2019

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