With the higher rate tax thresholds continuing to reduce in 2013/2014 and 2014/2015, you may find you are slipping into higher rate tax without even knowing about it. This brings with it the responsibility to ensure you complete a tax return if you receive income from anything other than employment.
For example, a number of people are being caught out on interest and dividends received in the year, even though they only have one employment. Tax is usually accounted for on bank interest and dividends at Basic Rate, therefore if you become a higher rate tax payer you will need to complete a tax return to declare the additional tax due.
What should I do?
There may be tax planning opportunities available, such as pension contributions, gift aid payments or qualifying investments to try to mitigate the higher rate tax becoming due. We have an experienced team at England & Company who will be happy to talk through your situation and consider viable options which suit you and your family. Please contact us on 01202 880384 or at email@example.com.