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  • #8010844
    High income/bonus. UK tax advice?
    Jimmy Chrisovergis
    Participant
    Mar 14, 2023

    I’m having a great year. I’m almost in ‘windfall’ territory with my bonus that is coming in April.

    I see lots of advice on becoming tax efficient in the USA but in the UK there doesn’t seem to be as many options.

    I believe it’s unlikely anyone here is going to be an accountant (possibly?) but is there anyone living in the UK who has had to deal with the tax problem and found a path to reduce it?

    #8010846
    Will Barron
    Keymaster
    Mar 14, 2023
    Will Barron Mar 14, 2023

    Hey Jimmy,

    Let me now how many zeros and I might be able to give better advice.

    Obviously not a financial advisor…

    For tax efficiency –
    – £40k SIPP
    – £20k ISA

    Otherwise –
    – Worth asking if they can split the bonus either side the next financial year. Might be possible if you’re getting it in April.

    #8010867
    Jimmy Chrisovergis
    Participant
    Mar 15, 2023
    Jimmy Chrisovergis Mar 15, 2023

    Thank you Will for the feedback! The bonus is mid 6-figures.

    Not a bad idea about asking to split the bonus.

    It’s going to be painful to get his with the self assessment this year!

    #8010868
    Will Barron
    Keymaster
    Mar 15, 2023
    Will Barron Mar 15, 2023

    Tax seems high in the UK but compared to the US for example, we don’t need health insurance and house prices and living costs VS the interesting cities is lower.

    If you’re not already paying into a SIPP and ISA they’re AMAZING from a tax perspective. I just wish the allowances were bigger :D.

    Also, with a bonus that size, set £5k to one side to treat yourself with. As long as the rest is going somewhere sensible, treat your self!

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