IronJambo Posted October 15, 2013 Share Posted October 15, 2013 On the back of the "on benefits and proud" fred I was just thinking about ways your average Joe on PAYE can keep himself on the rim of, but not quite pay out in the 40% tax zone. Scenario: John has worked out that he'll be taking home ?51k, putting him firmly into the 40% zone and taking away his child support allowance. What if he had planned ahead and throughout the year he's put aside ?9k in a mixture of BAYE type schemes and Brass payments for his pension. So now he's earned ?51k but ?9k has come off his wages before tax, technically making his gross income at ?42k and back to 20% tax payments(?) Has he successfully managed to avoid paying 40% tax on some of his earnings and got himself his child support allowance back? Or is it not as simple as that? disclaimer: I'm not John. Link to comment Share on other sites More sharing options...
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