About to go over 40% tax bracket by £1000 - help on how to avoid it

ffacoffipawb

stevenclarkuk wrote:

I meant to say... If you don't want to pay 40% on your last £1000, one option is to put the £1000 toward a company share scheme where the amount going to the share investment each month is deducted before tax. However, your take home pay would reduce by £600 a year and you might have to keep the investment for 3 to 5 years to be fully tax free...

Share scheme contributions (ie SAYE schemes) are paid out of TAXED income, ie they accrue no tax relief. But the proceeds on maturity are free of income tax.

sarahlouise210

ddclutch wrote:

Saeed,
Setting aside the complications that others have focussed on, if you want to avoid paying 40% on that top £1000, then you could donate to a charity and sign a Gift Aid declaration. You will still pay 40% initially but the charity can then claim back 22% on top of your donation, and you can claim the 18% as a tax refund.

mmmm.... bit of a problem with Saeed claiming back 18% tax relief when they find out about his in excess of £30,000 in the bank..the houses and money he has in his name for other people ..etc..etc..etc.. ! Makes claiming 18% of £1000 a bit pointless?? You cannot just set aside the complications that others of us here have focussed on... as the complications are the entire reason that Saeed started the post in the first place! To claim a refund hw would have to have dealing with the tax office .. a dealing he wants to avoid at all cost - even if it means a drop in salary!:rolleyes: