‘Beware!’ Britons warned of '60% tax trap' that could leave you paying more – how to avoid

1 min read

[ad_1]

This is often referred to as the “60 percent tax trap” as any income between £100,000 to £125,000 is in essence taxed at an effective rate of 60 percent (higher rate tax plus loss of allowance at 20 percent).

In order for people to reclaim their personal allowance, Mr Barrow suggested pension contributions.

He said: “One of the more popular tax reliefs to use are pension contributions.

“Generally any pension contributions made will reduce your adjusted net income (in line with the amount you contribute) which in turn can reclaim your personal allowance either partly or fully depending on the amount you contribute.



[ad_2]

Leave a Reply

Your email address will not be published.

Latest from Blog