“Adjusted Net Income” over £100, 000? It could impact your basic personal allowance.
The basic income tax personal allowance (£10,000 in the 2014/15 tax year) is reduced where a person has ‘adjusted net income’ in excess of £100,000.
The personal allowance is reduced by £1 for every £2 the limit is exceeded, so that if your 2014/15 income is greater than £120,000 all of your personal allowance will be taken.
There are number of simple steps that you may be able to take to keep your “adjusted net income” below the £100,00 limit and retain your full personal allowance. For instance you could;
- Transfer income producing assets to your spouse (provided their income is below the limit).
- Make (more) pension contributions.
- Make charitable donations.
If you are not sure the best approach to maintaining your full personal allowance why not contact Lewis Smith & Co.?
We can advise on all of your tax affairs and help you fill in your tax return. Lewis Smith & Co. can also recommend other professionals to support pensions and investment decision making.
Call 01384 235549 or email info@lewissmith.com today.
Lewis Smith & Co. – Accountancy services for Brierley Hill businesses.
Image courtesy of Stewart Miles/ FreeDigitalPhotos.net
