I am due to be made redundant on 11th May 2012 and will receive a redundancy payment of £70k. I am aware that the first £30k is tax free. I am likely to move on to a 6 month contract with another business where I could be earning up to £5k gross per month so for the tax year 2012/13 I will be in the higher rate bracket. Are there any ways in which I can reduce tax payable?
Hi.Apart from paying pension contributions to reduce your exposure to the 40% tax bracket, there really is little else you can do save from investing in high risk companies through the Enterprise Investment Scheme or Venture Capital Trust scheme. Let me know if you have nay further queries.
Inc Tax, CGT, Corp Tax, IHT, VAT.