{"id":438,"date":"2016-02-05T00:00:00","date_gmt":"2016-02-05T00:00:00","guid":{"rendered":"http:\/\/slacc.wpengine.com\/index.php\/income-alerts\/"},"modified":"2016-02-05T00:00:00","modified_gmt":"2016-02-05T00:00:00","slug":"income-alerts","status":"publish","type":"post","link":"https:\/\/slacc.co.uk\/index.php\/income-alerts\/","title":{"rendered":"Income alerts"},"content":{"rendered":"

\n\tEarnings over £100,000?<\/strong><\/p>\n

\n\tIf your taxable earnings for 2015-16 are likely to exceed £100,000, perhaps for the first time, now would be a good time to consider your tax planning options before 6 April 2016.<\/p>\n

\n\tFor every £1 your income exceeds £100,000 your income tax personal allowance will be reduced by £2. In effect, when your income reaches £121,200 you will no longer qualify for this allowance.<\/p>\n

\n\tThis would have a dramatic effect on the income tax charged on this top slice of income: from £100,001 to £121,200. The effective rate of tax charged would be 60%.<\/p>\n

\n\tAccordingly, any steps you can take to reduce your income below £100,000 will save you £600 for every £1,000 reduction.<\/p>\n

\n\t <\/p>\n

\n\tEarnings over £50,000<\/strong><\/p>\n

\n\tWhen the adjusted income of either parent exceeds £50,000 the family entitlement to child benefit reduces by 1% of the benefit for every £100 the income of the highest earner exceeds £50,000.<\/p>\n

\n\t <\/p>\n

\n\tIn plain English, this means that when the income of either parent is £60,000 or more the financial benefit of claiming child benefit is lost entirely.<\/p>\n

\n\t <\/p>\n

\n\tIt is worth reviewing income levels now to see if adjusted income can be reduced below the £50,000 threshold before 6 April 2016.<\/p>\n

\n\t <\/p>\n

\n\tPossible strategies to keep you below this level include:<\/p>\n

\n\t <\/p>\n