Maintain Your Full Personal Allowance

“Adjusted Net Income” over £100, 000? It could impact your basic personal allowance.

Full personal allowanceThe 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.

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