Mitigating a high tax bill
Despite government ambitions to reduce income tax rates, the overall tax burden is likely to remain at a historically high level for the foreseeable future. Higher earners are continuing to shoulder most of the burden.
This guide offers a detailed look at pensions tax planning for high earners with guidance on how to best mitigate a high tax bill.
“One in six income tax payers are currently taxed at the higher or additional rate. The proportion will increase significantly following the freezing of tax allowances and bands until April 2028.”
Pensions tax planning for high earners – what is included in the guide:
• The rising tax burden on income
Planning could help you to lessen the rising tax burden – and we’re here to help.
• Contribution planning
Pension contributions can offer a particularly effective way to reduce your tax bill whilst also helping you to prepare for retirement so you should make sure you are aware of all the options.
• Taking control of your pension plan – SIPPs
If you want more control over how your pension funds are invested, you may want to consider a SIPP, which allows you to choose how your savings are used.
• Withdrawing money from your pension
Careful consideration is needed of what level of withdrawal may be appropriate, and what investments should be encashed to provide it.
Retirement planning is complex, and has been made even more so by constant changes to the rules. We make it our business to stay up to date with the latest developments, and to help clients take full advantage of the available tax breaks.
