Up your pension contributions
In our section on how married landlords could reduce their tax bill, we saw how the changes to government’s mortgage interest relief can push some landlords from the basic to the higher income tax band.
The example we gave showed how a landlord who had to declare £5,400 of pre-tax profit before 2017 will have to declare £13,800 from 2020. That’s an extra £8,400 of declarable income that could easily push some landlords from basic rate to higher rate tax (which kicks in at £50,001 from April 2019.)
If that’s likely to happen to you, one strategy is to increase your pension contributions. Because these attract marginal rate income tax relief, they can bring your pre-tax income into the lower band – and save yourself money.