Pensions tax advice saves £65,240

The Problem

Mrs B had worked out she needed to be putting more into her pension prior to 5 April 2018. However she was unsure as to how much and how to arrange matters to optimise the tax reliefs. At first glance, it looked like a personal contribution of £80,000 net could be made, providing tax savings of £43,000. A further £8,000 net could be made after 6 April 2018, providing further tax savings of £4,500.

The Solution

A detailed “fact find” was carried out including analysis of the expected 2017/18 and estimated 2018/19 taxable income. Some straightforward steps were taken to reduce the 2017/18 taxable income and correspondingly increase 2018/19. The 2017/18 contribution was reduced to £70,400 net and the 2018/19 contribution increased to £41,600 net. Tax savings in total were now £65,240 – an increase of £17,740 from the initial starting point.

Mrs B said:

“Wilson Partners took away all the complexity I had been struggling with and reduced the solution to a short sequence of steps which I was able to understand and implement – and saved me significant amounts of tax in the process!”

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