20 Apr 2017, 3:28pm

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  • HRT

    Higher Rate Tax

    In a financial context, HRT is higher rate tax. Britain has basic rate tax at 32% (made up of a tax band of 20% and National Insurance of 12%) until you earn about £45,000, after which the rate is 42%, made up of 40% tax and 2% National Insurance.

    Avoiding HRT by paying anything earned over £45,000 into a pension is often a good move, as not so many pensioners are paid over £45000. If you save 40% tax going in and pay 20% coming out, that is a decent win.

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