Chris Thomas and Janet Hoskin identify the hot topics in employment tax for 2010
Five key developments in 2010 affecting employment taxation are as follows:
1. Introduction of 50% (and 60%) income tax rates
The new ‘additional’ income tax rate came into force from 6 April so that employment income in excess of £150 000 is now taxed at the rate of 50%. In addition the personal allowance was withdrawn for individuals with incomes in excess of £100 000 resulting in an effective rate of 60% on income in the £100 000 – £112 950 bracket (an anomaly which is still not widely known).
Why it matters: The 50% rate is a key issue for many clients (often at board level) and it has substantially accelerated an existing trend towards...
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Chris Thomas and Janet Hoskin identify the hot topics in employment tax for 2010
Five key developments in 2010 affecting employment taxation are as follows:
1. Introduction of 50% (and 60%) income tax rates
The new ‘additional’ income tax rate came into force from 6 April so that employment income in excess of £150 000 is now taxed at the rate of 50%. In addition the personal allowance was withdrawn for individuals with incomes in excess of £100 000 resulting in an effective rate of 60% on income in the £100 000 – £112 950 bracket (an anomaly which is still not widely known).
Why it matters: The 50% rate is a key issue for many clients (often at board level) and it has substantially accelerated an existing trend towards...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
