A BOLTON chartered accountancy firm is warning that some high earners will effectively be paying 60 per cent top rate of tax.
Ray Darby, managing partner at Bentleys chartered accountants, said: “A 50 per cent tax rate is coming in for earnings above £150,000 per year, but additional restrictions on personal allowances mean there is a small income band where the effective tax rate is 60 per cent. “Because those earning over £100,000 are to gradually lose personal allowances on a sliding scale, at a rate of £1 for every £2 of extra income, anyone earning above £112,950 will no longer receive any personal allowance. For anyone earning between £100,000 and £112,950, the restriction results in an effective tax rate of 60 per cent.”
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