Hi all. I earn around 65k a year. my wife earns 38k a year. we have 2 kids and we both work in the public sector.. I contribute 400 a month to an avc (net 240 cost). last January we set up an avc for my wife of 200 a month. we havent claimed any tax back yet for her contributions.
we had split the credits up that I would essentially start paying the higher rate at 49k and her at 31k. this way she could get 40% tax relief on her avcs up to 7k a year.
will this now be affected with the increase in the higher cut off for 40% tax due to the budget? if she isn't getting 40% relief it probably isn't worth it any longer. perhaps it should go to over paying the mortgage instead? thanks for any advice
we had split the credits up that I would essentially start paying the higher rate at 49k and her at 31k. this way she could get 40% tax relief on her avcs up to 7k a year.
will this now be affected with the increase in the higher cut off for 40% tax due to the budget? if she isn't getting 40% relief it probably isn't worth it any longer. perhaps it should go to over paying the mortgage instead? thanks for any advice