Corbyn proposals

Chippy99 · 11 September 2019 at 8:01AM

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)

00ec25 · 11 September 2019 at 9:08AM

wait and see

tacpot12 · 11 September 2019 at 9:45AM

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.

unholyangel · 11 September 2019 at 8:48PM

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.

Corbyn proposals

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