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The issue is one of my earnings going over the £100k band. In 2012/13 my gross earnings were £105k + £2k of taxable flexible benefits. This resulted (as in the previous year) in significant increase in tax paid per month + an under payment of £2.9k at the end of the year due by 11th April.
In 2013/14 i estimate my earnings could be c.£110k made up of £94k basic and an uplift of £16k to cover flexible benefits or take cash in lieu as part of my salary (then subject to income tax etc).
I was planning to actually spend the flexible benefits fund on benefits to bring my overall gross earnings down as i currently take the majority of that additional fund as cash in lieu which is the primary cause of my tripping over the £100k threshold.
Q. will this help me reduce the amount of income tax i pay as i am not sure (to your point) that taking it as additional salary then paying all the extra income tax is worth it.
One final question.
Do i pay an additional rate of income tax when i get above the £100k threshold or is 40% the upper limit.