How to Cut Tax on £90k pa Income ?

thequant

Been hearing alot about the K2 scheme, How does one join ?

Beauts

Randvegeta wrote: »

Doubt there is any significant you can do. I'm sure there are others on the board who have a few ideas about certain allowable deductables, tax credits and what have you. I have a few ideas how you can make your 90k go further as a self employed contractor . But not for PAYE. Sorry

Hi
I'd be interested to hear your ideas for a 90k contractor if you are willing to share, thanks
Beauts

kidmugsy

To enlarge on jem's point: you can pay £50k p.a. into a pension, less the 10% of salary that you and your employer are currently paying together. You can also carry forward some unused ability from previous years. If you judge that nicely you'll reduce your taxable pay to the top of the 20% income tax band. Job done.

racing_blue

Bit of a curveball, but if you need a new eco car & don't mind plugging it in you can potentially write 100% of the cost off against profits, plus get a government grant of up to £5k

http://www.nextgreencar.com/hybrid-cars/tax-incentives.php

Enhanced Capital Allowances

For some green technologies, businesses are able to claim an Enhanced Capital Allowance (ECA) intended to allow a company or organisation to set the whole cost of the asset (used for business related activities) against its taxable profits in the first-year following purchase.
New cars with tailpipe C02 emissions of less than 110g/km are eligible for an ECA. While any technology can qualify, at least six hybrid models have CO2 emissions under the 110 g/km threshold. Business owned hybrids therefore can lead to significant savings in corporataion tax within the year of purchase.

http://www.dft.gov.uk/topics/sustainable/olev/plug-in-car-grant

Grant = 25% of purchase price up to £5k max

Eligible cars and availability dates

Mitsubishi i-MiEV: Jan 2011

Smart fortwo electric drive: Jan 2011

Peugeot iOn: Jan 2011

Nissan Leaf: March 2011

Tata Vista: March 2011

Citroen CZero: Early 2011

Toyota Prius Plug-in Hybrid: Early 2012

Chevrolet Volt: Early 2012

Vauxhall Ampera: Early 2012

Hymer72

Take the job, surely you'll be netting another £1k a month?!

John_Pierpoint

thequant wrote: »

Been hearing alot about the K2 scheme, How does one join ?

http://www.accountingweb.co.uk/article/k2-scheme-sparks-tax-avoidance-debate/528736