Skip to main content
Tax Planning Strategies for High Income Earners
Reduce the impact of additional tax burdens
In this guide:
- How to reduce the tax burden on your salary? - This guide contains a multitude of key financial planning tips to help you make your personal tax situation as efficient as possible.
- Maximising available allowances – Careful consideration of the split of assets between spouses can have a significant beneficial impact on a couple’s income tax burden.
- Pension planning – Pensions continue to offer significant tax benefits that should not be ignored.
Please note that the Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. |
|---|
Provide your details below to receive your free guide.
From this guide:
If you are a taxpayer living in England or Wales, you will pay 40% income tax for an income of over £50,270 (assuming a full personal allowance is available).
Scottish taxpayers will continue to be subject to income tax at 6 different rates, ranging from 19% (Starter Rate) to 48% (Top Rate) for any income in excess of £125,140.
Regardless of whether you are an English, Welsh or Scottish taxpayer, if you claim child benefit and have an income of over £50,000, you will feel the impact of taxation even more keenly.
Taxpayers in England and Wales with a total income above £125,140 will pay the additional rate of 45%.
As tax allowances are progressively withdrawn on any income over £100,000, there is also a marginal effective rate of c.60% that applies to any income between £100,000 and £125,140 regardless of where you reside in the UK.
This increased tax burden for high earners is a deliberate policy by the Government, which stated: “As a clear result of the government’s reforms to tax, welfare and public spending across this parliament, the richest households will make the biggest contribution to reducing the deficit, both in cash terms, and as a proportion of their income.”
Download the full guide to read more.
Our clients speak for us
Meet our expert team
Copy of Copy of Copy of Copy of Template - People block - list (6.06)
Daniel Lea
Senior Financial Adviser - Chartered Financial Planner, APFS
Daniel helps clients with their financial needs and advises on various aspects of financial, investment, and retirement planning. He adopts a friendly, straightforward approach towards his work, aiming to empower his clients with informed decision-making.
Alex Shields
Partner - Chartered Financial Planner, FPFS
Alex looks to build up a detailed understanding of his clients’ situations which enables him to provide advice tailored to their circumstances. He believes that it’s crucial to communicate in a clear and straightforward manner to put his clients’ minds at ease.
Abby Ivison
Financial Adviser - Chartered Financial Planner, APFS
As a Chartered Financial Planner, Abby offers insight to guide clients with their financial needs. She is passionate about providing friendly, sound, and honest advice in a way that’s easy to understand so that her clients can feel empowered to achieve their financial goals.