You are going to be paying more income Tax and National Insurance over the next 4 years. This may because if the new Health and Social Care Levy or the fact that allowances and rate bands have been frozen until 2026. So, as inflation takes hold and earnings increase you will pay more tax, and possibly at higher rates.

This is a good time to look at making the most efficient use of your basic rate bands, between yourself and you spouse or partner. Can you legitimately transfer some of the income so that you avoid higher rates of tax. If your spouse is not working, can you justify paying them a wage, If you trade through a company could you transfer some shares so that the dividends also get shared out.

There are a few basic and perfectly legal strategies that you could employ. To find out more, get in touch.