Financial planning for busy professionals

Financial advice, financial planning and wealth management for high earners deals with the problems that come with a large and often rising income. Much of it is about tax:

• the 60% rate on income between £100,000 and £125,140
• the tapered pension allowance above £260,000
• bonuses and share awards that push you into higher bands.

It also covers turning surplus income into lasting wealth through pensions, ISAs and other investments, reducing reliance on your employer’s shares and protecting your income. Done well, it gives you a clear view of when you could stop working, without having to manage it all alongside a demanding career.

If your adjusted net income is between £100,000 and £125,140, you lose £1 of your £12,570 personal allowance for every £2 over £100,000. That creates an effective 60% income tax rate on that slice of income, or 62% with National Insurance. The most effective fix is usually a pension contribution, through salary sacrifice or a personal contribution, because it reduces adjusted net income. For someone earning £125,140, a £25,140 gross contribution restores the full allowance and costs around £10,000 after tax relief. For parents, it can also restore Tax-Free Childcare and funded childcare hours.

Possibly much less than the standard £60,000. The taper applies if your threshold income is over £200,000 and your adjusted income (which includes employer contributions) is over £260,000. Your allowance then falls by £1 for every £2 above £260,000, to a minimum of £10,000 once adjusted income reaches £360,000. You may still be able to carry forward unused allowance from the previous three tax years. Bonuses and share vesting can push income up late in the year, so model this before you contribute.

For most, yes. Sacrificing salary into your pension saves income tax at up to 45% (60% in the taper band) plus 2% employee National Insurance. Some employers also share their 15% National Insurance saving. From April 2029, National Insurance relief will apply only to the first £2,000 a year of sacrificed pension contributions, but the income tax saving is unaffected. Before sacrificing heavily, check how it affects mortgage applications and any benefits linked to your salary.

Decide before it’s paid. Many employers let you sacrifice some or all of a bonus into your pension, avoiding income tax and National Insurance, but this usually has to be agreed before the bonus is awarded. It’s especially valuable if the bonus would push you into the 60% band or reduce your pension annual allowance. For the rest, we’ll look at your ISA allowances, investing through a general account and, for experienced investors, venture capital schemes that offer upfront income tax relief.

Restricted stock units (RSUs) are taxed as employment income when they vest. Income tax and National Insurance are usually collected through payroll, often by selling some of the shares. Any growth after vesting is subject to capital gains tax when you sell. Approved schemes such as SAYE, CSOP and EMI can be more tax-efficient. The bigger risk is often concentration: many senior employees end up with a large part of their wealth in their employer’s shares. We help you plan when to sell, use your allowances and diversify.

Usually, yes. With most personal pensions, your provider adds basic-rate relief automatically, but higher and additional-rate taxpayers must claim the rest through self-assessment or directly from HMRC. Many never do. Missed relief can normally be claimed for the previous four tax years. On £40,000 of gross personal contributions, an additional-rate taxpayer could be owed £10,000 a year, so the total can run into tens of thousands of pounds.

Usually all three, in the right order:

• Pensions give the biggest upfront tax relief, but your money is locked away until 55 (57 from April 2028).
• ISAs offer tax-free growth and withdrawals with full flexibility, up to £20,000 each a year. From April 2027, under-65s can hold no more than £12,000 of that in cash.
• A general investment account lets you use your £3,000 capital gains and £500 dividend allowances, and can fund next year’s ISA each April.

The right balance depends on when you’ll need the money.

Start early and use the right accounts. VAT at 20% has applied to private school fees since January 2025, so educating two or three children privately can now cost well over £500,000. Common approaches include:

• investing regularly in ISAs from birth
• grandparents paying fees as regular gifts from surplus income, which can be free of inheritance tax straight away
• grandparents setting up a bare trust, where the income is usually taxed as the child’s.

We build school fees into your cashflow plan so they don’t come at the expense of your retirement.

Your pension is usually the biggest lever. Contributions, especially through salary sacrifice, get tax relief at up to 45%, and effectively 60% on income between £100,000 and £125,140. Carry forward lets you use unused allowance from the previous three years, although income above £260,000 can reduce your allowance. Beyond pensions:

• sacrifice bonuses into your pension before they’re awarded
• claim missed higher-rate pension relief from up to four years back
• use both partners’ ISA, capital gains and dividend allowances
• hold income-producing investments in the lower earner’s name
• claim higher-rate relief on Gift Aid donations
• if you’re an experienced investor, consider VCTs or EIS for 20–30% income tax relief.