“Not many People know that!”

Earlier this year Sir Michael Caine railed against the introduction of the 50% top rate of income tax by the Chancellor. “If the top rate goes beyond 50%, then I shall leave the UK” he was quoted as saying.

I have news for Sir Michael. He needs to start packing his suitcase now! The top rate will be 51%. Sir Michael had forgotten about the 1% national insurance hike which the Chancellor introduced a few years ago.

In fairness, Sir Michael is not the only one to overlook this. The Chancellor tends to as well. This is pretty much the highest accolade for a stealth tax.

Yet, for people with income just above the £100,000 the actual marginal rate is going to be 61%.

Of course, Sir Michael can simply leap on a plane and change his residence at a moments notice. That sort of pre-emptive action is not possible for must British taxpayers.  What they can do is to plan to minimise impact of the tax hikes when they come in on 6th April next.

That is indeed where we might come in. We are looking for the opportunity to advise businesses on what can be done. If you need some advice give us a call on 01376 326266.