If you are a high earner and feel you are paying more and more tax, you are not alone. Increasing the tax burden for higher earners has been a deliberate policy of successive governments. Higher and additional rate taxpayers now pay about two thirds of all income tax.
More than one in seven income tax payers are currently taxed at the higher or additional rate and the proportion will increase significantly following the freezing of tax allowances and bands until April 2026, with no guarantees beyond that. The thresholds for phasing out the personal allowance and the start of the additional rate tax have both been unchanged since they came into force in April 2010.
The Guide covers the following topics:
The tax burden on high income
The tax consequences of high income
The power of your pension
How you can use pension contributions to reduce your tax bill
Self-invested personal pensions (SIPPS)
The investment option that lets you control how and where your money is invested
The tax-efficient way to access your money, when the time comes
Our full range of Key Guides can be found at:
This publication is for general information and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of law and HM Revenue & Customs practice as at 2 November 2021.