We are a firm of chartered certified accountants and tax advisers supporting companies and individuals in the UK.
As you earn more, the cost of taxation increases and you are constantly subject to new rules which you didn’t have to deal with in the past. All of this can be quite confusing, and it is difficult to ensure if it’s done correctly or if there is anything else that you should be doing to minimise personal taxes. As a specialist firm, we only work with higher rate taxpayers to help them understand their taxes and also achieve the most tax-efficient financial position. This is a specialist area of tax with a lot of rules and tax planning strategies that only apply to high earners.
Once you have appointed our firm, we can take care of your personal taxes and even communicate with HMRC on your behalf. We provide ongoing support to our clients and only charge one all inclusive monthly retainer for personal tax management services. You pay the monthly retainer to us via a monthly direct debit so, no need to make manual payments each month. We monitor our client’s tax account using our commercial software tools with features designed for high earners. Personal taxes for higher earners is a specialist area of tax that even some non-specialist accountants find confusing, they either claim the wrong amounts or don’t claim it at all and it could result it expensive penalties or overpayment of tax.
Our Services:
Some of our clients: We maintain a mixed portfolio of high earner clients. Mainly our clients are doctors, surgeons, bankers, sales/corporate/IT professionals, solicitors and other highly-paid employees. Most high earners miss out on these tax reliefs because even when they earn more money, they get their tax return prepared using the basic accounting that overlooks high earner personal tax planning, costing you more in taxes or the risk of non-compliance.
RSU Taxation: Our clients include UK employees of publicly listed companies based in America and the UK. We can deal with the added complexities in relation to RSU shares of US listed companies like Google, Meta, Microsoft, Amazon and other publicly listed American companies. If you live in the UK and work for listed companies based outside of the UK then this service is highly suitable to your circumstances and it will help ensure your compliance with the UK tax system.
What happens when you earn more than £100k per annum?When you start to earn more than £100k per annum, there is a significant change in your circumstances. For example, as an employee, most of your taxes are paid via payroll. However when you earn more than £100k, you must submit an annual self-assessment tax return to HMRC as a high earner.
Above £100k, you will start to lose your tax-free allowance and the effective rate of tax could be as high as 60% of your earnings. Therefore, it is important to explore various strategies to become tax efficient and also employ the right resources to avoid non-compliance. We see many cases where clients had overgrown their previous advisors and reports were not prepared correctly.
Are you missing out? As a high earner, unfortunately, tax will continue to remain a high cost to your finances. However, we have found that this additional legal requirement can be used as an effective personal tax planning strategy. It gives us an opportunity to review your finances and make comments. Most people are not aware that there are so many ways the government incentives certain activities which will also reduce your personal taxes. Every taxpayer is different and it depends on your investment strategies. However, significant tax savings can be achieved by claiming tax reliefs.
Other Income and Tax Reliefs Income generated through dividends can also be considered in the overall plan, tax planning can help you to set an optimum level of dividends based on your circumstances. If you receive shares or option shares as part of your remuneration, we can help you understand and deal with the tax implications of those shares.
In addition to that, high net worth individuals tend to have multiple sources of income and could engage in complex business transactions (option shares, RSUs, benefits in kind, SPV, Gift aid donations, pensions, year of end bonus, pre/post IPO shares), we provide ongoing support to complete complex transactions and deal with tax matters afterwards.
I receive RSUs as part of my remuneration, how do I get taxed? ESPP, RSUA large number of our clients receive shares as part of their salary. These investments are subject to UK taxes including income tax and capital gains tax. Income tax is calculated automatically but things get complicated with CGT. Surely, CGT is as simple as calculating the difference between the original acquisition cost and the selling price? Unfortunately, it is not that simple.
These shares are subject to special rules and due to the level of complexity/variables, there is no template or a calculator to help with tax calculations. It does not exist. Although some platforms such as Morgan Stanley will help US based employees (WASH SALES) with these complex calculations. For UK based employees, the calculations must be done manually. Get in touch with us if you want our firm TaxQube to handle these tax obligations for you. Read this article if you receive ESPP or RSU shares.
High Earners Pension Allowance If you earn more than £260,000, your yearly allowance may be decreased and your personal taxes will go up if you have made excess contributions into your pension scheme. Read this article if you want to learn more about how pension allowances work.
for every £2 of adjusted income over £260,000, your annual allowance will decrease by £1. The minimum tapered annual allowance is £10,000. Everybody is entitled to claim the basic 20% tax relief on their contributions. However, because the amount of tax relief you get is linked to the highest band of income tax you pay, higher-rate and additional-rate taxpayers are able to claim extra tax relief on top of the basic 20%. Higher-rate taxpayers can claim a further 20%, while additional-rate taxpayers can claim an extra 25%.
So, if you’re an additional rate taxpayer, even at the minimum tapered annual allowance of £10,000, you could still get tax relief on contributions each tax year. Don’t miss out on these tax benefits and make sure you claim the additional relief.
Carry forward for high earnersAnother way to benefit from tax relief is by using carry forward, if your circumstances allow. High earners with reduced annual allowances may still be able to benefit from the carry forward rule:
Appoint TaxQube to manage your personal taxesBeing a regulated firm of chartered accountants, we are able to help you in dealing with your tax affairs as well as submitting any pending tax reports on your behalf. We look after a large number of professionals from various industries.
Unlike other firms, we do not charge anything from your tax savings which could be in thousands, you keep 100% of it. We help you maximise your tax savings as we have seen cases where people miss out by simply doing it themselves or by not using a tax specialist advisory firm like TaxQube.
We only charge a monthly retainer fee which gives you access to accredited tax advisers to help you manage your taxes and finances. Contact us for a free of charge initial consultation.
Our services are suitable for you if your earnings are in excess of £70k a year.
Experienced Tax Advisers | Monthly Fixed Fee | Chartered Accountants
To find out more, complete the enquiry form or call us on 0208 1234 768
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