Income Tax Archives

The £100,000 Tax Trap: Why Your Effective Tax Rate Can Reach 60%

August 24, 2026

The £100,000 Tax Trap: Why Your Effective Tax Rate Can Reach 60% Most people understand the basic idea of Income Tax. As your income rises, some of your income can move into a higher tax band. But there is an unusual part of the UK tax system that can make income between £100,000 and £125,140

Income Tax Planning for 2026/27

March 9, 2026

Income Tax Planning for 2026/27 With income tax thresholds largely frozen again for 2026/27 and dividend tax rates set to increase from 6 April 2026, careful planning is more important than ever. Fiscal drag continues to pull more individuals into higher tax bands each year, and for some taxpayers — particularly those in Scotland

Interest Income: How It Is Taxed for UK Individuals

February 11, 2026

Interest Income: How It Is Taxed for UK Individuals Interest income is one of the most common forms of investment income for UK individuals, yet it is also an area that frequently causes confusion. Many people assume that interest earned on savings is either entirely tax-free or automatically dealt with by their bank. In reality,

Income tax planning: tax thresholds and planning opportunities

January 22, 2026

Income tax planning: tax thresholds and planning opportunities Income tax planning remains a key area of focus, particularly as many tax thresholds continue to be frozen, bringing more taxpayers into higher rates over time through so-called “fiscal drag”. Although headline tax rates may appear unchanged, the effect of rising incomes against static thresholds can significantly

Using Losses Effectively: Income, Property and Capital Gains in 2025/26

December 13, 2025

Using Losses Effectively: Income, Property and Capital Gains in 2025/26 Losses are an inevitable part of running a business or managing investments — but when used correctly, they can be a powerful tool to reduce your tax bill. Whether you’re a sole trader, landlord, investor, or company director, understanding how to use losses across income

Can I Pay My Spouse a Salary to Reduce My Tax Bill?

October 30, 2025

Can I Pay My Spouse a Salary to Reduce My Tax Bill? For small business owners, especially those running limited companies or sole traderships, the question of whether they can legally pay their spouse a salary is a common one — and it’s an important one, too. Done correctly, employing your spouse can lead to

How to Keep Your £12,570 Personal Allowance

September 30, 2025

£100K Income Trap: How to Keep Your £12,570 Personal Allowance For high earners, hitting £100,000 in income might feel like a milestone worth celebrating — but there’s a hidden tax sting many don’t see coming. If your adjusted net income rises above £100,000, you begin to lose your personal tax-free allowance (£12,570). And between £100,000

What Is the UK Tax-Free Personal Allowance?

August 25, 2025

What Is the UK Tax-Free Personal Allowance? (2025/26 Update) Whether you’re employed, self-employed, or retired, understanding your personal allowance is essential for managing your income and keeping your tax bill in check. The personal allowance is the amount of income you’re allowed to earn each year before paying income tax. It’s a fundamental part of

Is Your Side Hustle Taxable?

July 7, 2025

Is Your Side Hustle Taxable? In early 2025, HM Revenue & Customs (HMRC) launched a campaign to help people with extra income understand their tax obligations. Whether you’re selling handmade goods, delivering packages, or renting out a spare room, it’s important to know when and how to report this income. If you’ve got a side

Personal Income Tax in 2025/26

April 16, 2025

Personal Income Tax in 2025/26: What’s Changing, What’s Not – And Why It Still Matters Although the Chancellor’s Spring Statement didn’t introduce major new income tax reforms, the 2025/26 tax year will quietly usher in some impactful changes and continue key freezes that affect millions of earners — especially those on middle to higher incomes.