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income tax bracket increase??
flopsy1973
Posts: 715 Forumite
I am soon to be renting out my house, and i have worked out between my income and the rent i will receive i will probably just go over the basic rate threshold into the 40% bracket. Is there any way i can mitigate against this or doing something to avoid going into this bracket with the rent i will get
Thanks
Thanks
0
Comments
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Options:
1. Reduce the rent a little.
2. Pay a bit more into your pension, that comes off your gross pay.
3. Wait until April 6, I think the amount at which the 40% tax band starts goes up 1%.
4. Give more to charity."Whenever you find yourself on the side of the majority, it's time to pause and reflect." - Mark Twain0 -
You do realise its only the bit in the bracket that you pay at 40%0
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I think OP thinks the whole income will be taxed at 40%0
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yep i thought it would all be taxed at 40 % big relief !!
what else is there i could do ???0 -
Learn about taxable income and thresholds!0
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And seriously consider not renting your house out!0
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flopsy1973 wrote: »yep i thought it would all be taxed at 40 % big relief !!
what else is there i could do ???
someone suggested pension contributions. Match your annual contributions by how much you hit the 40%.0 -
given that OP has only just learned how higher rate tax works I think it is rather premature to be starting on explaining how to gross up contributions to a pension so as to reduce net taxable incomesomeone suggested pension contributions. Match your annual contributions by how much you hit the 40%.0 -
given that OP has only just learned how higher rate tax works I think it is rather premature to be starting on explaining how to gross up contributions to a pension so as to reduce net taxable income
Intelligent people dont necessary need to know things, just to know people who do. He needs to get some professional advice via an IFA and an accountant. The few hundred they cost will be well worth the investment.0
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