Planning For Directors And Employees

Bringing forward income could be a sensible approach if you are not currently an additional rate taxpayer but expect to become one next year.

• If your income is less than £125,140 this year but is expected to exceed that figure next year, you could bring forward income into 2023/24 to avoid the additional or top rate next year.
• Conversely, if your income will fall below £125,140 in 2024/25, you might be able to avoid the additional or top rate of income tax this year by delaying a bonus until after
  6 April 2024.

You could consider a similar strategy to keep your income below the level at which you would lose your personal allowance. Alternatively, you could sacrifice salary to bring your income below any of the thresholds in exchange for a tax-free employer's pension contribution or a low-emission company car.