New Forest

06/03/2021

Don’t lose your 2020/21 personal allowance

For every £2 that your adjusted net income exceeds £100,000 the £12,500 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

The restriction applies between £100,000 and £125,000 adjusted net income. Another way that you could steer clear of this trap would be to agree with your employer to sacrifice some of your salary in exchange for a tax-free benefit in kind such as an additional pension contribution.

For further information on the 2020/21 personal allowance, please contact Matthew Magee on 023 8046 1207.

Latest Tweets

HMRC has announced their new Advisory Fuel Rates (AFRs) for Employees and Directors using a company car.

To read more, click the link 👉 https://bit.ly/3EiHCgr

The Energy Bill Relief Scheme will help to cut energy prices for businesses, charities and public sector organisations, such as schools and hospitals.

The scheme will run for 6 months and cover energy used from 1 October 2022 to 31 March 2023.

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