Posted by & filed under tax.

The Office for National Statistics (ONS) have revealed the list of the highest paid in 2016. Some of them are surprising!!

Job Average Salary
Brokers £133,868
Chief Executives £123,577
Marketing Directors (inc Sales Directors) £87,890
Pilots £86,915
Financial Managers £84,675
In-House Lawyers £80,210
Air Traffic Controllers £81,132
Doctors £78,386
IT/Telecommunications Directors £78,071
Financial Institution Managers/Directors £75,169

 

Well, the first thing I thought of when I read these figures was that they are very low! Where are all the bankers and chief execs that are taking home millions? Do footballers not count? But that is a different blog altogether!

If you are fortunate to be such a higher earner here is a list of things to think about:

  1. Can you pay more into your pension? Can you carry forward previous unused allowances to reduce your tax bill this year? As a 40% tax payer, if you pay in £60 the government will top it up to £100. People who earn over £150,000 per annum pay in £55 to get it topped up to £100.
  2. If you are an additional rate tax payer you will not benefit from a Personal Savings Allowance. Therefore anything you make in interest from savings is taxable. Therefore look to using your ISA allowance or if you trust your spouse (and they earn less than you), perhaps move money into their name.
  3. What about your Capital Gains Tax Allowance? If you are investing perhaps you should consider this?
  4. Have you heard about Venture Capital Trusts or Enterprise Investment Schemes? These are high-risk investments that come with tax advantages. Contact a specialist financial adviser to see if it is right for you.

If you have any questions, please get in touch.

Lots of Love

Miss Lolly xxx

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