Checking Your PAYE Code and Utilising Personal allowances
Many PAYE tax codes are incorrect when issued. HMRC may have included an estimate of your unearned income, that means you will pay tax on that income earlier than you would if it was assessed through your self-assessment tax return. You can ask HMRC to remove this estimated income and also correct any other errors.
If a spouse/civil partner has insufficient earnings to utilise the full £11,500 personal allowance, contemplate transferring income-paying assets, to use up both personal allowances. If neither partner pays tax at 40% or 45%, you can transfer up to 10% of personal allowance to the other, making a tax saving of up to £220.
Reduce income to below the £100,000 threshold, as the personal allowance is reduced by £1 for every £2 of net income over £100,000.
The rate for income over £150,000 is 45%, consider reducing your tax liabilities by deferring income, making donations to charity, making pension contributions, or gifting income-paying assets to a spouse/civil partner with a lower income.
Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice.