How we saved a Putney finance professional £22,000 on a bonus year
Client B is a senior finance professional in Putney who received a large annual bonus pushing his total income to around £240,000, well into the additional-rate band and through the £100,000 personal allowance taper where the effective marginal rate hits 60%. His previous accountant had simply filed the return showing the tax due without any planning.
We modelled the mitigation options before the bonus was finalised. A substantial pension contribution reduced his adjusted net income, recovering part of the tapered personal allowance and getting relief at his marginal rate. Gift Aid donations he was already making were grossed up correctly to extend his basic-rate band. We also reviewed the timing of an RSU vesting that could be deferred to the following tax year to avoid stacking on top of the bonus.