Excited about your latest pay rise? Then you realise that you’ve just been pushed into a higher tax bracket!
With your pay rise comes some unwanted tax changes. The amount of tax-free savings income you can earn is cut in half. The tax you pay on your dividends will also rise once you hit the higher rate threshold. Adding to this, capital gains tax on the sale of investments will soar.
But there are ways to mitigate the loss of tax reliefs when a pay rise pushes you into the higher tax bracket. Options to reduce the losses include making full use of Isas, utilising salary sacrifice and increasing pension contributions.
Our tax experts at Beavis Morgan are committed to ensuring that your tax reporting obligations are fully satisfied and that every opportunity to lawfully exploit tax savings is made known to you, restructuring your affairs in a tax effective and efficient way.
For more information, and to make sure you don’t pay more tax than you legally need to, contact your usual Beavis Morgan Partner.
