Profession · 2026/27
IFA Salary 2026/27: Employed vs Self-Employed Practice
UK Independent Financial Advisers are split between employed (at network firms or banks) earning £45,000-£90,000, and self-employed practice owners earning £80,000-£200,000+. Most carry Level 4 Diploma (DipFA) minimum, many Level 6 Chartered.
Typical pay & take-home
- Median gross
- £65,000
- Typical range
- £45,000–£150,000
- Take-home at median
- £48,257
England, no pension applied — use the salary calculator for your scheme.
At the median for this profession, you earn about 74% above the UK full-time median (£37,430), placing you in the top 16% of UK earners.
What influences independent financial adviser pay
Employed IFAs at network firms (St James Place, Quilter, Openwork) earn base £45,000-£70,000 + 10-30% bonus tied to assets under advice. Most cross the £50,270 higher-rate threshold by year 3.
Self-employed IFAs running their own practice (or partnership) take profits via a mix of salary + dividends. With Corporation Tax at 19-26.5% and dividend tax at 10.75%/35.75%/39.35% (2026/27 rates), optimal extraction structuring saves £4k-£8k vs pure PAYE at typical £100k+ profit levels.
Trail commission and recurring revenue from assets under management is the main driver of senior IFA pay. A practice with £30-50 million AUM and 0.5-1% trail produces £150k-£400k recurring revenue annually.
Career progression
- Paraplanner (entry): £28,000-£40,000.
- Trainee IFA (post-Level 4 DipFA): £35,000-£45,000.
- Employed IFA (3-5 years experience): £55,000-£75,000.
- Senior IFA / Chartered Financial Planner: £75,000-£100,000+.
- Self-employed IFA / practice owner: £80,000-£200,000+.
Frequently asked questions
- What is take-home for an employed IFA?
- On £65,000 base + £10,000 bonus = £75,000 gross with 8% workplace pension and no student loan, take-home is approximately £49,300-£50,000 a year after Income Tax (40% on £24,730), NI and pension.
- Should an IFA go limited company?
- For high-earning IFAs (£100k+ profit), operating via Ltd company typically saves £4,000-£8,000 a year vs sole trader. Director salary up to £12,570 + dividends from post-CT profits is the standard structure. The savings narrow at lower profit levels - sole trader is often simpler and similar net for sub-£60k earners.
- How does FCA fee burden affect IFA take-home?
- Self-employed IFAs face fixed annual costs of £8,000-£25,000: FCA fee, PII (professional indemnity), FOS levy, network fees, software (Iress, Intelligent Office) and CPD. These are tax-deductible expenses but reduce gross-to-net materially - a £150k revenue practice often nets £90k-£110k after costs and tax.