We bet you thought the highest rate of tax in the UK was 45%, right?
Wrong, would you believe it 60%?
Because taxpayers lose their personal allowance at a rate of £1 for every £2 their income goes over £100,000 in a year, every pound they earn costs them the normal 40% marginal rate of tax plus the 40% on half of the allowance lost, which is 60%. Tough eh?
True, it is harsh, but it does give a chance for super high tax relief. If your income is at this level and you make a pension contribution then you will enjoy a tax saving of 60%. It also works for any other allowable expenses.
If you’re a higher earner, self-employed or an employee, talk to us about helping you save big amounts of tax.
