More Top Earners Snared by Tax Hike
Tax expert Owen Kyffin warned this week that a quirk in the tax rules could push more high earners into paying 60 per cent income tax.
Owen, a partner in the leading accountants and business advisers Whitley Stimpson, which has offices in Banbury, Bicester, Witney and High Wycombe, said: “It comes about because people earning between £100,000 and £123,000 a year lose their tax free personal allowance. It is a situation that is not widely known and has been highlighted through a report from the Institute for Fiscal Studies.”
The report says the anomaly is the result of a rule whereby people’s personal allowance reduces by £1 for every £2 that their adjusted net income rises above £100,000 and that by the end of the next tax year a million people will be dragged into the 60 per cent bracket.
Owen said: “The situation could have been solved by the politicians during the general election campaign but it was not addressed by either of the two major parties. The situation is becoming more complex and it could pay higher income earners to check their tax situation.
“In fact it would be sensible for most people to check that the Inland Revenue figures are correct in relation to the amount of tax they should be paying because of continual changes in the personal tax allowances.”
Owen Kyffin can be contacted at Whitley Stimpson on 01295 270200 or by email at owenk@whitleystimpson.co.uk
More in Accountants
Why having an audit can boost your business
Many directors will wince at the prospect of an audit, seeing it as a necessary evil to meet statutory obligations.
FRC Proposes Major Overhaul of Auditing Standards
In a bold move, the Financial Reporting Council (FRC) has unveiled proposed changes to auditing standards that could have a major impact on the financial world, according to chartered accountants and business advisors Whitley Stimpson.
Whitley Stimpson shines as finalist for top national award
Service Charge Accountancy specialist Jonathan Walton of Whitley Stimpson has been recognised for his outstanding work in the field by being shortlisted for a prestigious property industry award.
From this author
Why having an audit can boost your business
Many directors will wince at the prospect of an audit, seeing it as a necessary evil to meet statutory obligations.
Whitley Stimpson welcomes Sushma to Bicester
Leading accountants and business advisors Whitley Stimpson, announces the appointment of Sushma Pandey who joins the company’s Bicester office.
FRC Proposes Major Overhaul of Auditing Standards
In a bold move, the Financial Reporting Council (FRC) has unveiled proposed changes to auditing standards that could have a major impact on the financial world, according to chartered accountants and business advisors Whitley Stimpson.