116%(!) effective marginal tax rate between 50-60k....options?

Dazed_and_C0nfused

Yes.

But you only get higher rate relief on higher rate tax actually paid.  There is a perception that people get an "extra 20%" just for being a higher rate payer.

But if you paid higher rate tax on just £1 then the higher rate tax relief would only be £0.20p.

Jeremy535897

JustVeryTight said:

Dazed_and_C0nfused said:

It wouldn't be 20% though because you wouldn't be paying 20% on the full £10k.

The basic rate band in 2021:22 is £50,270 so you would be saving £1,946 (£9,730 x 20%) assuming that you do in fact pay higher rate tax on £1,946 in the first place.

Thanks, but I'm still not clear. Sorry!
A simple question:
Can I claim higher rate tax relief on gift aid contributions made on gross taxable income between £50270-60k in tax year 2021:22? 

Yes, but if you do it through your notice of coding, it will manifest itself in a reduction of tax deducted under PAYE. See
https://www.gov.uk/donating-to-charity/gift-aid 

This would work (ignoring HICBC) as follows (ignore rise in rates for 2021/22 as they have to be confirmed in the budget): income if no gift aid £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £37,500 at 20% + £10,000 at 40% = £11,500.
Income with £10,000 gift aid (£8,000 net) £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £47,500 at 20% = £9,500.
Tax saving £2,000 being HRT 40% - BRT 20% = 20% of £10,000 =£2,000

Whilst the family element of your CTC tapers at 41% as you say, I doubt you receive £10,000 of it. You may find that this element is quite trivial. See:
https://revenuebenefits.org.uk/pdf/calculating_tax_credits_example_7.pdf

JustVeryTight

Jeremy535897 said:

JustVeryTight said:

Dazed_and_C0nfused said:

It wouldn't be 20% though because you wouldn't be paying 20% on the full £10k.

The basic rate band in 2021:22 is £50,270 so you would be saving £1,946 (£9,730 x 20%) assuming that you do in fact pay higher rate tax on £1,946 in the first place.

Thanks, but I'm still not clear. Sorry!
A simple question:
Can I claim higher rate tax relief on gift aid contributions made on gross taxable income between £50270-60k in tax year 2021:22? 

This would work (ignoring HICBC) as follows (ignore rise in rates for 2021/22 as they have to be confirmed in the budget): income if no gift aid £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £37,500 at 20% + £10,000 at 40% = £11,500.
Income with £10,000 gift aid (£8,000 net) £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £47,500 at 20% = £9,500.
Tax saving £2,000 being HRT 40% - BRT 20% = 20% of £10,000 =£2,000

Whilst the family element of your CTC tapers at 41% as you say, I doubt you receive £10,000 of it. You may find that this element is quite trivial. See:

Thank you, it's totally clear now. 
And yes, believe me, there's entitlement all the the way to 60k in our case. It's quite surprising I know, but kids with severe disabilities take it very high indeed, thus my effective marginal rate. 

JustVeryTight

(obvs I have an emtr of 73% on anything under 50k already, which is quite an interesting thing to me in itself).

Jeremy535897

JustVeryTight said:

Jeremy535897 said:

JustVeryTight said:

Dazed_and_C0nfused said:

It wouldn't be 20% though because you wouldn't be paying 20% on the full £10k.

The basic rate band in 2021:22 is £50,270 so you would be saving £1,946 (£9,730 x 20%) assuming that you do in fact pay higher rate tax on £1,946 in the first place.

Thanks, but I'm still not clear. Sorry!
A simple question:
Can I claim higher rate tax relief on gift aid contributions made on gross taxable income between £50270-60k in tax year 2021:22? 

This would work (ignoring HICBC) as follows (ignore rise in rates for 2021/22 as they have to be confirmed in the budget): income if no gift aid £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £37,500 at 20% + £10,000 at 40% = £11,500.
Income with £10,000 gift aid (£8,000 net) £60,000 less personal allowance £12,500 = £47,500. Tax deducted under PAYE £47,500 at 20% = £9,500.
Tax saving £2,000 being HRT 40% - BRT 20% = 20% of £10,000 =£2,000

Whilst the family element of your CTC tapers at 41% as you say, I doubt you receive £10,000 of it. You may find that this element is quite trivial. See:

Thank you, it's totally clear now. 
And yes, believe me, there's entitlement all the the way to 60k in our case. It's quite surprising I know, but kids with severe disabilities take it very high indeed, thus my effective marginal rate. 

Yes, it's really very silly. Even worse than Labour's 98% in the seventies.