This morning Chancellor Kwasi Kwarteng has done a U turn and announced that the 45% tax rate for the highest earners will not be abolished, previously a measure announced in the mini budget a couple of weeks ago.
The reason given for this was that it is “ a distraction from our overriding mission to tackle the challenges facing the country”. He tweeted “We get it, and we have listened”.
The impact of this is that for those people who were thinking of delaying income, where this was possible, until after the tax cuts, the benefit of doing so has been taken away.
Of course, there may be other reasons for trying to manage your income into a particular tax year, for example to avoid being put into the higher rates of tax, or becoming liable to the high income benefit charge and we are happy to discuss this with you at any time.