Speak to a Saltus expert...
Please fill in your details to arrange a financial review with one of our financial planning or investment experts.
How it works:
- We will call you back to find out more about your aims and requirements
- We will arrange a meeting with one of our team at a convenient time, either over the phone, on video, at your home or workplace, or at one of our offices
- You will be able to ask any questions you have and find out more about managing your wealth with Saltus
- Your review will be at our cost and there is no obligation to work with us afterwards
Who we work with:
- Individuals with £250,000 or more in investable assets. This includes pensions, ISAs, other tax-wrappers and cash available for investment.
Have you been failing to maximise your pension contributions each year? Well, you could make up to £36,000 by using a little industry secret called carry forward!
Before I explain how you can do this, it’s important to cover something known as the annual allowance:
The annual allowance is the total amount you can put into your pension each tax year. It’s currently a sizeable £60,000 or your total income, whichever is lower. However, it’s important to remember that this includes both your personal contributions and the contributions your employer makes. If you go over your allowance, you’ll be subject to a charge at the end of the tax year.
I should also highlight that this allowance can taper down fairly dramatically, if you earn over £360,000. However, if you are earning this much, you should probably be working with a financial planner anyway.
Meet your financial needs and objectives…Speak to an expert
This £60,000 pension allowance might sound like a lot but you can actually get even more into your pension by using ‘carry forward’.
If you have used up your current year’s pension allowance, you can look back over the past three years for any allowance you did not use and contribute this to your pension.
As such, if you were earning enough, it would theoretically be possible to put £144,000 into your pension in a single tax year.
The 20% in relief, received from your pension provider, turns this £144,000 into £180,000. You’ll also be able to claim higher and additional rate tax relief on your return, so you can effectively save a further £45,000 in relief.
Now there are some nuances here that can impact just how much you can put into your pension in a single tax year – the previous tax year rules surrounding the annual allowance and how much you earn for example. However, these figures should simply highlight the impact carry forward can have.
Carry forward could be particularly relevant if you have received an inheritance or a large bonus and want to magically turn it into more money. The larger the amount, the greater the potential to save in taxation.
At the end of the tax year, do keep an eye on how much you’ve contributed in the last three years, as your opportunity to make use of carry forward changes with each year that passes. I’d also suggest taking advice before using this method as there are several complexities to consider.
So, if you want the chance to make some immediate free money, even as much as £36,000, see whether you can use carry forward this tax year.
All authors have considerable industry expertise and specific knowledge on any given topic. All pieces are reviewed by an additional qualified financial specialist to ensure objectivity and accuracy to the best of our ability. All reviewer’s qualifications are from leading industry bodies. Where possible we use primary sources to support our work. These can include white papers, government sources and data, original reports and interviews or articles from other industry experts. We also reference research from other reputable financial planning and investment management firms where appropriate.
Saltus Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority. Information is correct to the best of our understanding as at the date of publication. Nothing within this content is intended as, or can be relied upon, as financial advice. Capital is at risk. You may get back less than you invested. Tax rules may change and the value of tax reliefs depends on your individual circumstances.
Find out more about our award-winning wealth management services…
Financial Advisory Firm of the Year
Client Relationships Award
Financial Services, Banking and Insurance Firm of the Year
Investment Performance Cautious Portfolios
Best Medium Firm
Investment Performance: Cautious Portfolios
Investment Performance: Balanced Portfolios
Financial Planning Firm of the Year: Small to Medium Firm
Financial planning can help you reach your goals in life, whether you want to determine when you can retire comfortably, bring organisation to your financial world or pass on your wealth effectively.
Pensions and retirement planning
Deciding when to retire is a challenging decision and can feel like a leap of faith. At Saltus, we gather information on all of your existing assets and then use our technology and expertise to show you exactly how to achieve the retirement you’re after.
Reducing your tax burden
How to structure your wealth and access income should be approached in a sophisticated way. A detailed financial plan may use pensions, ISAs, general investment accounts, offshore bonds and other tax wrappers to ensure you can draw your money in a tax-efficient manner.
Consolidating your wealth
Holding multiple investment accounts and pensions can mean they’re hard to keep track of and administer. We’ll help you overcome this by consolidating your accounts into a single plan so that you can understand your financial position with ease.
Protecting you and your assets
We protect our cars and houses without much thought yet you might be the most valuable asset in your family. Whatever your situation, we can provide advice to ensure you have the right level of insurance in place to keep your finances protected.
Passing on your wealth
Estate planning is more important than just having a Will. We’ll work closely with you to understand how estate planning, which has emotional as well as financial consequences, can impact your overall financial plan.
Significant life events
Significant life events can present great opportunities but also considerable challenges. Whether you are going through a business sale, divorce or are receiving a lump sum, we’ll help build a financial plan to meet your changing lifestyle.