From January 2013, following the introduction of the High-Income Child Benefit Charge (HICBC), many higher rate taxpayers have to navigate the effects of up to four different tax bands.
Tax planning is optional but it is wise to consider it where marginal tax rates (the effective rate of tax on each additional £1 earned) can be as high as 70% of income.
See Tax planning for income at marginal tax rates for strategies to avoid unexpected tax charges.
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