The tax rate is due to change, it was announced by the chancellor in the Autumn Statement.

The lower personal tax rate will increase from £11,850 to £12,500 or £50,000 for higher taxpayers from April 2019. The increase of the tax threshold means you will pay less tax in 2019.

If you want to lower your tax rate down from 40% evaluate what you pay into your premium. Pension contributions are deducted before tax this ‘reducing your annual taxable income’ For example if you earn £60,000 contribute 15.5% into your pension, doing so will reduce your taxable income to £49,500 meaning you now fall into the 20% tax bracket.

Please note it is worth checking you are not caught by the tapered pensions tax – read more about tapered pension tax here.

If you require any assistance please contact us on 01295 477 250 alternatively you can email hello@progresswithassureuk.com.

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