With current bonus levels, I am well above the basic tax rate. Childcare vouchers, company pension & share investment plan help reduce taxable income a bit but I really need to cut taxable income further to qualify for child benefit next year. I have maxed out my pension & am using carry forward rules this year.
I have been thinking about the quote below:-
"Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands."
I am certainly not the target market for "child benefit", but if I can arrange my affairs legally to qualify for it, is there anything wrong in doing so? It is worth £4,000 gross per annum, assuming a 40% tax cost.
Additionally, the main driver for me is to be home more with the baby & this will allow Mrs Sacadoh to start looking for work, which she is keen to do.