High employment earnings

High employment earnings

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I do not prepare many personal tax returns but a relative has asked me to prepare his.

He is single, with no children, and is employed by a large organisation on a 6 figure salary, with no other sources of income.

Are there any obvious tax planning points I should be considering for the past year (his employment status may be changing in the next few months) or is it simply a question of calculating the tax due?

Thank you

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By cparker87
13th Jan 2016 13:54

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Unfortunately planning is prospective by its very nature. So you're not likely to have much luck with 2014/15 income, except maybe a gift aid carry back or if he's venturing into self-employment and expects losses which could also be carried back. 

That aside, you might ordinarily look at efficiencies within the remuneration package and some other tax schemes. Salary sacrifice pension, exempt BIKs, remuneration via dividends (depends very much on employer), investment in (S)EIS qualifying companies.

Ideally you want to avoid the £100k+ PA trap. However, you don't supply the income figure so it's not easy to tell you if you've any hope of avoiding it. 

If you want to be aggressive you might also enter into a CFD with employer but that will be expensive to implement. 

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