People earning over 150k

NOVAMET21

What do people earning over 150k do to minimise the income tax?

Clearly, they might max out the pension allowance but still with this they will still be over 100k and lose personal allowance.

Do they just take the hit and pay over 60% effective rate?

Dazed_and_C0nfused

Gift Aid and EIS investments are a couple of options but EIS is not without risk.

billy2shots

Salary sacrifice  into a car could be another option. 

Jeremy535897

The only other way to get out of the 60% band is if you set up your own business that is commercially run with a view to profit, that needs the purchase of some significant plant or machinery that qualifies for 100% capital allowances, for example a van. The loss created by the purchase can then be set against your other taxable income. One common arrangement is for the spouse to run the business in partnership with you, and you take a 99% share of any tax loss, but if there are profits, the spouse takes 99% of the taxable profit.

EdSwippet

Cut down on work hours, and gain leisure time?

Flugelhorn

agree work a bit less 

sheramber

I know an accountant who only works for ten months of the year  for that reaon.

Jeremy535897

That all demonstrates why punitive rates of tax are such a stupid idea.

Flugelhorn

Jeremy535897 said:

That all demonstrates why punitive rates of tax are such a stupid idea.

had the same with NHS pension scheme thresholds, £1 over and you paid another 1% on the whole of the year's earnings  ... had some carefully kept spreadsheets and had to say no to extra work during March