Bonus/Pension advice please.

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Just found out DH has missed deadline for Salary Sacrificing his bonus. He completely ignored emails about it back in December. It was always our intention for bonus to be sacrificed this year as pension is relatively low due to his previous employer going into administration along with his final salary pension. Also he is a high rate tax payer and we have three children and will lose child benefit if he gets bonus.

Has he completely blown all options or is there likely to be any other options?

I am so frustrated with this as he is so disinterested in money and this is just another example of it costing the family dearly with his non interest.

We have talked about seeing a financial advisor would they be able to look at our whole financial situation, life insurance, pensions taxes etc and give us advice to follow? If so how much would this sort of service cost and how to choose where to go? Would it be OK to just go to the nearest?

dunstonh

We have talked about seeing a financial advisor would they be able to look at our whole financial situation, life insurance, pensions taxes etc and give us advice to follow?

yes

If so how much would this sort of service cost and how to choose where to go? Would it be OK to just go to the nearest?

Cost is something you cant say as there are 25,000 advisers out there with different charging models. Some will be low cost, some high. There is no commission any more but the cost of advice can be taken via any product that is set up. If no product is set up, then it would be paid for by cheque.

https://www.unbiased.co.uk is the main database and you can search by postcode. Make sure the listing for the adviser type is independent and not restricted.

GhIFA

Am assuming that the bonus has now been paid - If so, he can still put the net payment received into pension. It's not as beneficial as using salary sacrifice, but will at least still give tax relief. This will still also reduce the total earnings considered for the purposes of the child benefit charge.

With regards to the query about using an IFA - Dunston has already more than capably answered that one.

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GhIFA wrote: »

Am assuming that the bonus has now been paid - If so, he can still put the net payment received into pension. It's not as beneficial as using salary sacrifice, but will at least still give tax relief. This will still also reduce the total earnings considered for the purposes of the child benefit charge.

With regards to the query about using an IFA - Dunston has already more than capably answered that one.

Bonus will be paid 29th March.

I guess making an appointment with an advisor ASAP would be advisable,

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With regards to cost should we phone a few and ask for their charges before making an appointment?

GhIFA

Always worth ringing around - also ask friends/family/colleagues for any recommendation.

If the bonus hasn't been paid yet, is it worth your husband speaking to his HR/Payroll team, they may still be able to do something about paying it via bonus sacrifice?

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GhIFA wrote: »

Always worth ringing around - also ask friends/family/colleagues for any recommendation.

If the bonus hasn't been paid yet, is it worth your husband speaking to his HR/Payroll team, they may still be able to do something about paying it via bonus sacrifice?

I will get him to ring payroll and see if they can help but I think their deadlines are usually pretty final (not the first time he has missed important ones).

Have been looking at the unbiased website at their advice. Maybe if we go together and get advice he will pay a bit more attention than just me trying to advise.

somethingcorporate

You could put it into a SIPP but will lose the NI benefit of sacrificing. It comes with certain risks i.e. you need to be sensible about your investments.

I am intending to do this next year to keep under the £50k threshold for CB if I can.