High earners will lose £000s under new rules - Punter Southall

The consultant said thousands of people on higher incomes face material reductions in their net income from this month, as the initial impact of a swathe of tax changes hits corporate payrolls. It added the restriction of pensions tax relief for higher earners was another step that will come into force next April and will have "a significant impact on net pay". For example, for someone earning £175,000 the impact from 2011/12 will be five-fold: 1. Their personal allowance will be eroded completely. 2. They will be paying some 50% tax. 3. Their National Insurance contribution...