£0 allowance due to £112+ etc
Discussion
Make a lump sum pension contribution. This will (at the moment) attract 40% tax relief and will be deducted off your £112,000 gross salary, thereby restoring some of your personal tax allowances. The more you pay, the more tax allowances you will claw back.
Although I am not a big fan of Salary Sacrifice schemes, I can see how more employers might introduce such schemes for those types of non-taxable benefits (employer's pension contributions, creche facilities, child care etc) as from 6 April 2010, these schemes could be used to reduce the gross salary of higher earners back into a salary range where the reduction in personal tax allowances is mitigated or wiped out entirely.
Although I am not a big fan of Salary Sacrifice schemes, I can see how more employers might introduce such schemes for those types of non-taxable benefits (employer's pension contributions, creche facilities, child care etc) as from 6 April 2010, these schemes could be used to reduce the gross salary of higher earners back into a salary range where the reduction in personal tax allowances is mitigated or wiped out entirely.
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