how can i avoid paying 40% tax if im paye??
Discussion
I know some bright spark will just tell me not to earn so much money but seriously, is there a way out of havin to pay 40% tax once you earn over 39k?
Really bugs me workin so many hours then bein stung for it in tax.
Bit of a workaholic & work as a 24hour breakdown engineer so working less hours isn't really an option.
Any ideas from the worldly wise??
CC
Really bugs me workin so many hours then bein stung for it in tax.
Bit of a workaholic & work as a 24hour breakdown engineer so working less hours isn't really an option.
Any ideas from the worldly wise??
CC
Matt - that's being not self employed.
That's being a director/shareholder of your own limited company.
True, if you run your own business (whether as a self-employed sole trader or through a limited company) you have more flexibility in deciding how you wamt to extract money from the business and what types of costs can be offset against business profits. However, the main savings (especially in the case of limited companies) are not in tax but in National Insurance.
That's being a director/shareholder of your own limited company.
True, if you run your own business (whether as a self-employed sole trader or through a limited company) you have more flexibility in deciding how you wamt to extract money from the business and what types of costs can be offset against business profits. However, the main savings (especially in the case of limited companies) are not in tax but in National Insurance.
I agree with Eric, Personal Pension/low cost SIPP. Venture Capital Trusts are less attractive than they were, but still interesting, provided (!!) that you pick the right one.
Also make sure that you gift aid/reclaim tax on any charitable contributions as you can now afford to give more.
Also make sure that you gift aid/reclaim tax on any charitable contributions as you can now afford to give more.
I may be wrong, but I think that you can offset any loss you make on holiday flats against your personal tax. Not on residential lets, just holiday flats. Some sort of government initiative to encourage people to take holidays in England I guess.
Or only spend 90 days in the UK, then you don't have to pay any tax at all.
Or only spend 90 days in the UK, then you don't have to pay any tax at all.
Renting of holiday homes is treated as a "trading" activity. Trade losses can be offset aginst other income in the same tax year.
Normal letting income is not considered to be a "trading" activity. Losses derived from ordinary letting can only be carried forward for offset against future letting profits from the same property.
Normal letting income is not considered to be a "trading" activity. Losses derived from ordinary letting can only be carried forward for offset against future letting profits from the same property.
There will be tax free lump sum paid out on retirement so it's not all going to be taxed.
Deferring taxes is still better than paying them now.
And, you may be deferring taxes at a higher rate now so that you pay taxes at lower rates later in life - depending in your overall finnacial circumstances, of course.
Deferring taxes is still better than paying them now.
And, you may be deferring taxes at a higher rate now so that you pay taxes at lower rates later in life - depending in your overall finnacial circumstances, of course.
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