50p row heats up
The Treasury has reported a fall in revenues since the launch of the 50p tax rate as income tax payments fell by £509 million against last year.
The Telegraph reported that the fall in income tax payments came amidst attempts by wealthier Britons to avoid the impact of the tax. The amount compares with the £10.35 billion received in income tax payments last year.
The row is likely to be fuelled by the revelation that former BBC newsreader and face of HMRC Moira Stuart used a (legal) tax avoidance structure to get around the impact of the 50p rate as Taxguide.co.uk noted yesterday.
Taxguide.co.uk recently spoke to Chas Roy-Chowdury, head of taxation for accountancy body ACCA regarding some of the ways for taxpayers that fall into the 50p band can avoid the full impact of the rate.
He argued it was important for taxpayers to 'First use up their (ISA) allowances' and also consider the tax-free savings offered by NS&I.
'There is also the possibly of receiving half your remuneration into a pension fund' (Taxguide.co.uk notes that payments into a pension fund can be offset against the year end liabilities on a self-assessment form) or 'You could look at receiving payment in the form of shares or other assets'.
Further information on mitigating the impact of the 50p rate is available here.