Tax Data

Help & Advice

Higher rate taxpayers

Gift Aid – If the donation is made by an individual tax relief is available at the taxpayer’s highest rate. The individual pays the net amount to the charity and claims the higher rate relief on their tax return. The charity claims the basic rate deduction. If the individual does not have a tax liability to cover the amount claimed by the charity this will be clawed back by HMRC from the individual.

Withdrawal of Child Benefit – If you or your partner claim Child Benefit and your income is between £50,000 and £60,000 some/all of the benefit is clawed back.

Withdrawal of Personal Allowances. For every £2 you earn over £100,000 your personal Allowance is reduced by £1.If you anticipate this happening in future years you may wish to consider rearranging your tax affairs by:

  • reducing or delaying income,
  • bringing forward income (so you avoid this the following year),
  • diverting income to your wife or,
  • making some form of tax-deductible investment i.e. a personal pension contribution.