Senior executives, with incomes over £150,000, have to share their income over this level on an almost equal basis with HM Revenue & Customs (HMRC), through their income tax liability. As a result, they'll pay 45% income tax and 2% National Insurance, equal to a 47% deduction.
If you have an adjusted net income of more than £100,000, you will pay tax at an effective rate of 60% on income between £100,000 and £125,140 because of the erosion of your personal allowance (for the 2021/22 tax year). Considering the most effective methods of easing your tax liability is as important now as it ever has been.
When reviewing your finances, we will examine whether you are maximising your ISA and using your Capital Gains Tax allowance. With careful planning and looking at your lifelong cash flow requirements, it is possible to maintain your desired lifestyle and sustain wealth during retirement.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount initially invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.
If you would like to speak to us about a particular issue or wish to find out more about the specialist advice services we offer for business owners, please get in touch.