PAYE - Tax Breaks

L

LouthMan

Guest
Hi People

I work in Sales and earn between 90K and 120K a year. I am a single man and pay a huge amount in Income Tax. Apart from a pension is there any other Tax breaks out there for people like myself ?

Thanks
LM
 
LouthMan said:
I am a single man and pay a huge amount in Income Tax.
LM
Click to expand...

You do not pay a huge amount, you simply pay 42% like the rest of us (or most of)

- Donation to some charities may be tax reductible.
- Make AVCs to your pension, up to the max allowed for tax free, depends on age
- Get married ???
 
Hi Louthman

I dont earn anything like you
but I do try and reduce the amount of tax I pay

Does your employer run an Approved Share option sheme ?
This way you would salt away shares tax free up to the revenue limit of 12700 Euro per year.
The only sting in the tail is that you must hold onto the shares for at least 3 years.
This the main tax free break we only have, other than AVCs / Pension.

Jz1
 
Hi

I do pay a huge amount - 40% of my Gross !
When you earn 100K it kicks in big time !

What are AVC's ??

Thanks
LM
 
LouthMan said:
Hi

I do pay a huge amount - 40% of my Gross !
When you earn 100K it kicks in big time !

What are AVC's ??

Thanks
LM
Click to expand...

When you earn 50K it kicks in big time too, at least you have another 50K which you are getting nearly 60% of.

AVC's are Additional Voluntary Contributions, basically additional payments to your pension in excess of your normal monthly deductions.
 
LouthMan,

are you really paying 40% of your gross in income tax???

A single person making 45k-50k would pay about 22%-24% in income tax.

I'm just a bit surprised that you pay this much.
 
According to [broken link removed] tax on 120k for a single person is 41082 which is 34%
 
I expect you are an employee as opposed to self-employed so charitable donations won't be deductible for you, but you might feel good about making them. If you are paying 40% in tax on 120k you are still clearing 6k per month with no wife and (presumably) no kids to drain your resources, <snip>
 
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