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    • Annual Accounts
    • Bookkeeping Services
    • Business Consultancy
    • Business Growth
    • Financial Planning
    • Cash Flow Forecasting
    • Financial Forecasting
    • Online Accounting
    • Payroll Services
  • Tax Advice
    • Capital Gains Tax Advice
    • Corporate Tax Advice
    • Inheritance Tax Advice
    • Making Tax Digital
    • Property Tax Advice
    • R&D Tax Credits
    • Self Assessment Support
    • VAT Advice
  • Sectors
    • Startup Accountants
    • Small Business Accountants
    • Construction
    • Creative and Digital
    • Dentists
    • Ecommerce
    • Electricians
    • Hair Salons & Barbers
    • Hospitality
    • Influencers
    • Law Firms
    • Manufacturing
    • Medical Professionals
    • Personal Trainers
    • Plumbers
    • Retail
  • About Us
    • Our Team
    • Our Social Commitment
    • Working With Us
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Don’t lose your personal allowance

  • Written by AC Accounts
  • March 5, 2019
  • Insights

Don't lose your personal allowance

For every £2 that your adjusted net income exceeds £100,000 the £11,850 personal allowance is reduced by £1. Pension contributions and Gift Aid can help to reduce adjusted net income and save tax at an effective rate of 60%.

The restriction applies between £100,000 and £123,700 adjusted net income. Another way that you could avoid this trap would be to agree with your employer to sacrifice some of your salary in exchange for a tax free benefit in kind. These rules changed from 6 April 2017 but employer pension contributions, bicycles, and employer provided childcare would continue to be tax effective.

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