EFC Financial Planning

28/02/2024

Today, you’ve got far more flexibility in how you plan your retirement income, but there are a few tax-traps to look out for.

Paying tax when you’re working is quite different to paying tax when you’re retired.

Understanding how your tax position changes when you stop working is an important practical step to staying financially healthy and secure when you retire.

➡️ Taking your retirement income tax-efficiently

➡️ Will I pay tax on my pensions?

➡️ What if I’ve got different types of pension?

➡️ Will I pay tax on any other retirement income?

➡️ How can I avoid paying too much tax when I retire?

✅ Financial advice and a tax-smart retirement

Everything you need to know about tax in retirement

05/02/2024

One of the constant challenges we all face is the impact of inflation (i.e. the cost/price of everything we spend our money on is constantly increasing over time) 📈

Faced with this challenge, we need to ensure that our income and/or assets are increasing at a rate that is AT LEAST in line with the rate of inflation, just to maintain our ability to afford the same items.

If the rate of return we are achieving is lower, then we are effectively becoming poorer as we can afford less.

IDEALLY, we want to be achieving a rate of return above the rate of inflation, so that we are making 'real returns' and growing our wealth.

Investing in the correct assets, inside the most tax-efficient accounts, is likely to have a huge positive impact over the long term.

Then it's about making sure you are contributing enough (this should be an ever increasing percentage of your income) and sticking to the plan.

➡️ We can help you with all the above!☝️

Investing to beat inflation for the long-term

25/01/2024

Keep more of your bonus/income...

As we approach the end of the 2023/24 tax year, and many annual bonuses are being announced/discussed/paid, a great way to ensure you keep more of your bonus (or any income really!) is to simply make a pension contribution.

Benefits are:

✅ Less income tax
✅ More money into your pension
✅ Tax free growth on your investments within the pension ‘wrapper’
✅ 25% tax free cash on withdrawal
✅ Potentially reducing your Inheritance Tax (IHT) liability

So, overall, less money being paid to the tax man, and more money being allocated towards funding your lifestyle in retirement. Your future self will thank you for it! 🙏

Happy to answer any questions about the best way to set this up! 😊

Boosting your pension pot before tax year-end

18/04/2023

As the new tax year starts, here is a reminder of the main tax exemptions and allowances, and what has – or hasn’t – changed for this year.

A bit of planning goes a long way!

Your new tax year checklist

01/02/2023

Ever heard of anyone paying 60% income tax? 🤔

Chances are not, since, according to HMRC, Income Tax is charged at 0%, 20%, 40% or 45%, depending on how much you earn. 🤓

But the '60% income tax trap' is a real thing, and those earning between £100,000 and £125,140 can end up paying 60% tax. 🤯

✅ The article below explains how this happens and more importantly, how you can avoid the situation if it applies to you.

➡️ Are you sure you're being as tax efficient as possible?

✅ A chat with a financial planner can ease your worries and lead you towards a brighter future!

Beating the 60% tax trap

19/01/2023

Proud to qualify for the Top Rated Financial Advisor guide for the 2nd consecutive year.

Client feedback is a great way to find out what you're doing well and what could be improved from the people that really matter.

Ultimately, you're only as good as your clients think you are!

Thank you to all my clients who took the time to leave a review. I really appreciate it. Onwards and upwards!

Proud to qualify for the Top Rated Financial Advisor guide for the 2nd consecutive year. Client feedback is a great way to find out what you're doing well and…

13/01/2023

This year more than ever, making the most of your 2022/23 annual allowances and tax reliefs before tax-year end is one of the most practical steps you can take to tackle those tax rises, and bring your tax bill down.

No matter what your personal circumstances are, this cost-of-living crisis is beginning to bite. Although some of us may have more of a buffer against rising inflation, energy bills and interest-rates, the longer-term impact on our financial wellbeing is making for sleepless nights.

✅Using up your personal allowances helps to make the most of your investments, meet your outgoings, and lays the right foundations for your financial future. As with lots of the work we do in financial planning, "you're future self will thank you for it".

➡️These are the ‘big four’ personal allowances not to miss out on:

1️⃣ ISA Allowance
2️⃣ Pension Allowance
3️⃣ Gifting Allowance
4️⃣ Capital Gains Tax Allowance

Using your allowances to lay the foundations for your financial future

08/12/2022

💡 It’s always a good idea to take advantage of your annual tax reliefs and allowances wherever you can.

Not only does it mean that you don’t pay more tax than necessary, it also helps to improve your investment outcomes and makes it easier to achieve your financial goals. 📈🏆

This year, though, it’s more important than ever. In his first Autumn Statement, Chancellor Jeremy Hunt announced reductions to a number of key allowances used by investors, as part of his attempts to shore up the nation’s finances. 😬

➡️ The message is use them or lose them.

✅ Here's what you need to do before the end of the tax year (5 April 2023)

Tax year-end: how can I make the most of my tax allowances?

10/11/2022

Lasting money habits begin forming at just 7 years old, which can shape our goals, aspirations, self-esteem and peace of mind. So the younger we start education, the more significant impact we can have.

Give your children the best chance of forming a positive relationship with money, by teaching them everything you wish you knew at their age.

Let's .

09/11/2022

When we talk about saving and investing, we generally think of it as setting some money aside for the future.

Go deeper into it, however, and it becomes clear we’re talking about two quite distinct activities. For example, what do we mean by the future - next week, next month, next year or indefinitely? How much are we putting aside, where does it go and what do we want from it? 🤔🤷‍♂️

The answers to these questions tell us whether we’re talking about saving or investing. And it’s important to understand the difference.

✅ The article below explores the reasons for saving and the reasons for investing, and how to achieve the best of both worlds.

Saving vs Investing in your future: the right balance for you

11/10/2022

Helping you choose the right investments for you is just one part of your overall financial plan.

There are many other areas that we can help you with at different stages of your life to make sure you've covered all the angles and you're confident that you're moving in the right direction.

✅ This means, less worry for you and more time to spend on the things you enjoy 😁

Isn't that what life's all about?

Are you investing in your future self?

Read our guide to financial planning through important life events: http://ow.ly/fYZp50L6EnO

05/10/2022

Tax is a crucial part of financial planning ➡️ Fact! ✅

Taking advantage of the numerous tax reliefs and allowances not only means you don’t pay more than you need to, but it can also go a long way towards helping you achieve your financial goals.

But UK tax can be confusing at times, too. 🤔🤷‍♂️

To help you get a better understanding of the system, here are our answers to your top five tax queries regarding the points below:

1. 60% Income Tax

2. Buy-to-let Properties

3. Dividends for Business Owners

4. Inheritance Tax

5. Overall Tax-Efficiency

Knowing about taxes is one thing, but you have to be prepared to do something about it to receive any benefit.