Do I need someone to help?

martinthebandit

I may be getting a new job and the wages from that plus my pension will take my total income into the higher tax bracket.

Would there be any likely benefit to me if I got a tax accountant to look at my financial affairs to see if I could save on income tax, and would that benefit be likely to outweigh the cost?

Thanks in advance.

Funky_Bold_Ribena

Your total income doesn't go into the higher bracket - just the income above the higher allowance.

Dazed_and_confused

martinthebandit wrote: »

I may be getting a new job and the wages from that plus my pension will take my total income into the higher tax bracket.

Would there be any likely benefit to me if I got a tax accountant to look at my financial affairs to see if I could save on income tax, and would that benefit be likely to outweigh the cost?

Thanks in advance.

As you are only £1 into the higher rate bracket it's highly unlikely the cost of professional advice would be worth the 20p saving!

CLAPTON

how much is your pension income?

how much is your salary
does your job have a pension associated with it?

martinthebandit

.............

CLAPTON

for the coming tax year the 40% band starts at 41,450 after any payment to pension has been made

you only pay 40% on the excess over 41,450

main way to mitigate income tax are
-paying into a pension
-giving to charity

martinthebandit

CLAPTON wrote: »

for the coming tax year the 40% band starts at 41,450 after any payment to pension has been made

you only pay 40% on the excess over 41,450

main way to mitigate income tax are
-paying into a pension
-giving to charity

Thanks for that, its as I thought

CLAPTON

look on the bright side
you now have a very good income
and you pay less deductions that some-one with an equivalent total earned income as you pay no NI on the pension income (a useful saving)
relax and enjoy a glass of wine in the sunshine (OK a bit early and there is a lack of sunshine where I am...)

WHA

No one else can say how much it would be worth to you to consult an accountant. You don't "need" one as all info is on the web, but an accountant may give you peace of mind that your tax affairs are in order and may point out all your options for tax savings/planning. It's really up to you.

If you want to paint your house, you can either research the various types of paint and chose what's best for you, then pay your £20 for a tin and do it yourself, or you can get a decorator and pay a hundred or two for him to buy the paint (his choice due to experience) and do it for you. That's your choice, and whether or not to use an accountant is just the same.

I have loads of clients who "don't need" an accountant, but are still happy to pay a relatively modest amount for an annual review to give them peace of mind that they've got all bases covered.