{"id":441,"date":"2019-01-07T00:00:00","date_gmt":"2019-01-07T00:00:00","guid":{"rendered":"https:\/\/duffyregan.co.uk\/index.php\/2019\/01\/07\/the-top-rate-of-income-tax-is-45\/"},"modified":"2019-01-07T00:00:00","modified_gmt":"2019-01-07T00:00:00","slug":"the-top-rate-of-income-tax-is-45","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2019\/01\/07\/the-top-rate-of-income-tax-is-45\/","title":{"rendered":"The top rate of Income Tax is 45%?"},"content":{"rendered":"<p>Named the additional rate, the highest rate of Income Tax is 45%, and some might say 45% is high enough.<\/p>\n<p>However, if the rate of tax is measured as the relationship between income and tax plus tax related penalties paid, there are times when this 45% can rise, to as much as 90%.<\/p>\n<p>For example, if HMRC discovers that a taxpayer has been negligent in declaring all their income for tax purposes, they can charge a penalty. This can be as much as 100% of the tax due &ndash; effectively this doubles the rate of tax charged. And so, if you are paying tax on under-declared income at 45%, and if a 100% penalty is levied, the effective rate of tax charged is 90% of the income declared.<\/p>\n<p>Whilst this may be an extreme example, consider taxpayers whose income exceeds &pound;100,000. For the tax year 2018-19, for every &pound;2 your income exceeds &pound;100,000 you lose &pound;1 of your tax personal allowance. This means that taxable income between &pound;100,000 and &pound;123,700 is taxed at an effective rate of 60%.<\/p>\n<p>All is not what it seems.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>Named the additional rate, the highest rate of Income Tax is 45%, and some might say 45% is high enough. However, if the rate of tax is measured as the relationship between income and tax plus tax related penalties paid, there are times when this 45% can rise, to as much as 90%. For example, [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-441","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=441"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/441\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=441"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}