How can I make myself tax efficient

Newbie_John

Your interests take you to higher tax rate.

Trim them a little bit:
- 100% salary to pension and live of savings
- premium bonds £50k
- max out ISA every year
- buy gilts, TG46, TG50 instead of adding more to pension

GIA could be an option but.. it could make a lot of issues with tax - depends on what you invest in - it may still come back taxable

boingy

Yep, Pension, pension and pension. 

MEM62

Dazed_and_C0nfused said:

JV_21 said:

Hi there

I was hoping to get some thoughts on how best to maximise my finances in a tax efficient way so I'm not paying as much tax on interest. I already max out my ISA allowance and a total 16% goes into my pension. No particular financial goals really.

Based on the figures below, are there other things I should consider? I understand GIAs could be an option.

I'm 45 male, single, no children.

Mortgage paid off.

Salary: £46k.

Cash savings: £273k. I realise it's too high.

Taxable bank interest: around £12k.

ISAs (cash and S&S): £154k.

Pension value: £111k.

Thank you

Your pension value looks very low given your age and earnings. 

Absolutely this.  In your situation I would be dumping a load of that cash into my pension.  

Linton

At 45 you really should be starting to consider your retirement plans and how to finance them.  That may give you the incentive to really maximise your pension.

JV_21

Appreciate everyone's comments.

I'll certainly look into my pension. Is it worth someone in my position seeing a financial adviser to review everything and plan things out? 

ColdIron

JV_21 said:

I'll certainly look into my pension. Is it worth someone in my position seeing a financial adviser to review everything and plan things out? 

Probably not if you are just going to increase your contributions, unless your circumstances change radically. Your employer's pension scheme is probably the best and certainly the easiest option. Financial advisors, independent or not, don't work for free

MEM62

JV_21 said:

Is it worth someone in my position seeing a financial adviser to review everything and plan things out? 

In my opinion yes.  I did a lot of reading on the subject and our adviser still put us in a better position.