Pensions tax planning for high earners
Mitigating a growing tax bill
If you are a high-earner and feel you are paying more and more tax, you are not alone. More than one in seven income tax payers are taxed at the higher, additional or top rate and they pay about two thirds of all income tax.
Increasing the tax burden for higher earners has been a deliberate policy of successive governments. For instance, the thresholds for phasing out the personal allowance and the start of the additional rate tax threshold have both been unchanged since they came into force in April 2010. It is likely that the burden of restoring national finances after the Covid-19 crisis will largely fall on high earners.