If you are self-employed, a freelancer, or have more than one source of income, you must file your yearly self assessment tax return with HMRC. This is true even for employed individuals, where HMRC may require you to file a tax return to ensure your tax affairs are in order.
In the United Kingdom, tax rates are based on income and are divided into different brackets. The 40% tax bracket is one of the highest tax brackets in the UK, with a high tax rate for individuals earning more than Β£50,270 as of 2023.
In this blog we will analyse the fundamentals of the 40% tax bracket, implications for taxpayers and effective strategies for lowering your tax liability.
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