Earn Over £47,400? Here Are 3 Essential Tax-Saving Tips from a Financial Adviser

If your income exceeds £47,400, you’re in the top 25% of UK income taxpayers – and that likely means you’re paying a significant share of the nation’s total tax bill. With frozen thresholds, rising bills, and reduced allowances, tax planning has never been more important.

As a UK-based independent financial adviser, we’re here to help you navigate this evolving tax landscape. Whether you’re approaching key income thresholds or simply looking to improve your financial efficiency, here are three strategic tips to keep more of what you earn.

👉 Book a meeting with an adviser today to explore how we can help optimise your tax planning.

The Hidden Impact of Frozen Tax Thresholds

While many people earning in the higher bands don’t consider themselves “wealthy,” frozen thresholds are gradually pulling more earners into higher tax brackets. Those earning over £100,000 may even find themselves paying an effective 60% tax rate due to the loss of the personal allowance.

This isn’t just about the tax on your salary. Higher-rate and additional-rate taxpayers also lose out on savings, dividend, and capital gains allowances – leading to steep taxes on investments.

-Higher-rate taxpayers: £500 savings allowance and £500 dividend allowance.

-Additional-rate taxpayers: No savings or dividend allowance.

-Capital Gains Tax (CGT) allowance: Slashed from £12,300 to £3,000.

It’s no surprise that higher earners now pay 85% of all tax collected on savings and dividends in the UK.

A certified financial advisor can help you identify strategies that reduce these liabilities and make your money work harder for you.

Tip 1: Maximise Your Pension Contributions

One of the best tax-saving tools available is your pension. Contributions to a pension – whether a workplace scheme or a Self-Invested Personal Pension (SIPP) – are highly tax-efficient.

-You’ll receive 20% basic-rate tax relief on contributions automatically.

-Higher-rate and additional-rate taxpayers can claim an extra 20% or 25% via self-assessment.

-That means a £100 contribution could effectively cost just £55 if you’re in the 45% tax bracket.

Pension investments also grow free from income tax and capital gains tax, and they’re a cornerstone of long-term retirement planning.

Note: Access to pension funds is typically not permitted before age 55 (rising to 57 in 2028), and rules may differ for Scottish taxpayers.

👉 Book a meeting with an adviser to discuss how pension planning can support your financial goals and reduce your tax burden.

Tip 2: Use Your ISA Allowances Strategically

An ISA (Individual Savings Account) offers one of the most straightforward ways to protect your savings and investments from tax.

-This tax year, you can invest or save up to £20,000 in ISAs.

-Stocks and Shares ISAs shield your investments from income tax and CGT.

-Cash ISAs protect savings interest from tax – especially useful for higher earners with reduced savings allowances.

Don’t forget Junior ISAs – you can contribute up to £9,000 per child per year, growing funds free from tax until they turn 18.

There’s speculation that ISA rules, particularly for Cash ISAs, may tighten. Taking action now ensures you benefit from today’s generous terms.

Working with an independent adviser can help ensure you make the most of your ISA strategy as part of a broader financial plan.

Tip 3: Transfer Assets to Your Spouse or Civil Partner

Transferring assets to a spouse or civil partner on a lower income can be a smart move.

Why? Because they may still have unused:

-Personal income allowance

-Savings allowance

-Dividend allowance

-Capital gains allowance

Gifting investments between spouses/civil partners is free of capital gains tax, and allows you to maximise household tax efficiency. A top financial adviser can guide you on how to structure these transfers in a compliant, effective way.

👉 Book a meeting with an adviser to review your joint tax position and ensure both partners are making full use of available allowances.

Need More Help from a Certified Adviser?

If these strategies sound promising but you’re unsure how to implement them, our team of certified advisers are here to help. Whether you need support with pensions, tax efficiency, or wealth protection, we provide tailored financial adviser services that align with your goals.

Your first call with our advisory team is completely free. You’ll learn whether advice is appropriate for your situation, and there’s no pressure to proceed unless you’re ready. Should you choose to move forward, we’ll outline any fees clearly before you commit.

Our clients come to us to find financial advisers they can trust – advisers who are transparent, independent, and committed to long-term service.

If you’d like to reduce your tax bill, protect your investments, and make the most of your allowances, get in touch.

👉 Book a meeting with an adviser and take the first step towards smarter financial planning.

This article is for general guidance only and doesn’t constitute personal advice. Investments can fall and rise in value, and tax rules can change. Speak with a qualified adviser to understand what’s best for your individual circumstances.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.