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Blog March 2017 – Don’t lose your personal allowance!

March 2017 – Don’t lose your personal allowance!


2 March 2017

For every £2 that your adjusted net income exceeds £100,000, the £11,000 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

The restriction applies between £100,000 and £122,000 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 are changing from 6 April 2017 but employer pension contributions and childcare vouchers will continue to be effective.

So if your income is above £100,000 please get in touch by clicking here or calling us on 01206 266692.

The blog was written by Lee Taylor

Proactive accountant helping business owners make more profits, pay less tax and build more successful businesses.

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