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Corbyn proposals

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As your may be aware, Labour are proposing a 50% top income tax rate on income over £123k.

Fortunately I am expecting a large commission payment over the coming months which would take me very substantially over that figure - I am currently marginally over it.

If Labour were to win a general election in November and immediately introduce a new budget, is there any precedent in when such tax changes take place? Would it be immediately or (say) come into effect from April?

I.e. Will I have any time to do any juggling? (Bringing the commission payment forward, paying it into my pension etc)

Comments

  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    wait and see
  • tacpot12
    tacpot12 Posts: 9,235 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 11 September 2019 at 9:47AM
    An income tax rate change would normally be made effective at the start of a new tax year because HMRC systems and the self assessment process aren't setup for changes to be made part-way through a tax year.

    Paying a large amount of the commission payment into your pension is probably the best move. You will need to check the rules to see exactly how much you can pay in.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Even if they could change it through part of the year, as someone on over 100k....you won't be required to fill out your tax return until the january following the tax year end.

    Even for someone who is PAYE only, they'd still have the opportunity to alter their adjusted net income. PAYE is really only a method of collecting tax - not of calculating your liability. Your actual tax liability can never be properly realised until the tax year is over.
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
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