Downsides to entering 40% Income tax bracket

[Deleted User]

CLAPTON wrote: »

plus the 10% bonus

Of course - I have clarified my post.

loofer

xylophone wrote: »

Could you not pay enough into your pension to obviate the problem?

https://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

That way you would not need to worry about reduced child benefit/ reduced personal savings allowance/inability to take advantage of marriage allowance.....

Thanks, not sure why I didn't think of this earlier!
Looks like the best way to do this overall is to try and reduce my tax liability such as increasing pension contribution, paying to charities via PAYE rather than DD and to see what other Tax exempt Salary Sacrifices I can make use of (push bike maybe)

I'm not overly bothered about the savings interest rate effect as I don't get anywhere near £500 pa.
I won't be affected by the 50k Child Benefit cap anytime soon.
I believe the threshold rises to 45k next year with I would assume a Personal Allowance rise too.

So it seems the main outcome for me will be losing the marriage allowance of £1,150 or £230 tax saving.

d70cw6

yeah, just do what everyone else does: increase your pension contributions to push you out of the 40% band.