There is a lot of fuss being made at this present time about the 45% tax rate and the possible reintroduction of the 50% tax rate. However it is not that simple! There are what are termed “marginal” rates of tax so that if income falls within a certain tax band there are effectively different tax rates that apply.
How many tax rates are there in 2013/14 – for an employee with 2 children for whom he receives child benefit?
The child benefit withdrawal started in January 2013.
For this purpose national insurance is deemed to be a tax by another name!
If your income for 2013/14 is going to fall into any of those bands where the tax rates shoot up now would be a good time to talk to us to see how you can avoid paying those penal rates.