As the tax year draws to a close, now’s the perfect time to review your finances and make sure everything is in good shape before 5 April. For higher earners, the rules can be especially complex — with tapered allowances, reduced benefits and unexpected tax charges that can catch you by surprise.
A bit of forward planning can make a real difference. Here’s our year-end tax planning checklist for high earners, designed to help you make the most of available allowances and avoid common pitfalls before the new financial year begins.
Review Your Pension Contributions
Your pension remains one of the most tax-efficient ways to save for the future. However, if you’re a higher earner, you may be affected by the tapered annual allowance.
Most people can contribute up to £60,000 each year and receive tax relief. Once your income exceeds £260,000, though, your annual allowance starts to reduce — potentially falling as low as £10,000. Exceeding this limit can result in an unexpected tax charge.
Before the end of the tax year, check your total pension contributions and whether you have unused allowances from the previous three years that could be carried forward. Porter Garland can confirm how much you can safely contribute and ensure you’re making the most of this valuable tax relief.
Avoid High Income Child Benefit Charge
If you or your partner earns over £50,000, you could be subject to the High Income Child Benefit Charge. Once the higher earner’s income reaches £60,000, the benefit is lost entirely.
There are legitimate ways to reduce this impact. Making pension contributions or charitable donations can lower your adjusted net income and help you retain more — or all — of your Child Benefit. Strategic planning now can prevent an unnecessary clawback later.
Watch the £100,000 Threshold
Crossing the £100,000 income threshold can be an unpleasant surprise, as your personal allowance begins to taper. For every £2 you earn above £100,000, you lose £1 of allowance — meaning you could face an effective 60% tax rate on part of your income.
It’s one of the most common “stealth taxes” for high earners, but it’s easily managed with the right advice. Extra pension contributions, charitable giving or salary sacrifice arrangements can help reduce your taxable income and restore your allowance.
Porter Garland can help you model different options and identify the most efficient way to protect your earnings before year-end.
Make the Most of Your Annual Allowances
Before 5 April, check you’ve made use of this year’s key allowances for 2025/26:
- ISA allowance – up to £20,000 per adult, though the budget may reduce this
- Capital Gains Tax allowance – £3,000
- Dividend allowance – £500
These allowances may be smaller than in previous years, but they still provide valuable opportunities to save or invest tax-free. A quick review with your accountant will ensure your money is working as efficiently as possible before the deadline.
Don’t Leave Tax Planning Until the Last Minute
It’s easy to delay financial planning when you’re busy, but getting organised before the end of the tax year can make a big difference — not only to your tax bill but to your overall financial position.
At Porter Garland, we help individuals and business owners make the most of their year-end tax planning. Our expert accountants can help you use every available allowance, avoid unnecessary tax charges and plan confidently for the year ahead.
If you’d like to review your position or get tailored advice before 5 April, get in touch with Porter Garland for a friendly chat. We’ll help you put a clear plan in place, so your finances start the new tax year in the best possible shape.