Do I need a financial adviser/planner to review my pension tax issues or is this an accountant's job?

22 September 2021

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Question by Chantal

Both my partner and I are high rate tax payers and we continued paying into work pensions where we're no longer employed alongside pensions provided by our current employers. We don't file any tax returns and so maybe losing out on all pension top-ups from the government. At the same time, we may not be eligible for the 20% government top up we're receiving on the old work pensions we continue to pay in? Would a financial adviser/planner be able to review all of this or is this a (tax) accountant's job?


Answered by Matt Angell

Hi Chantal,

The first thing to consider, is your current employer using salary sacrifice for your pension contributions as there would be no need to claim the tax relief as which is applied at your highest rate immediately and taken from your gross pay before tax and NI. If you are not using this method then you would need to claim the additional 20% via self-assessment.

The old work pension that you continue to contribute into would certainly need you to claim the additional 20% tax relief via a tax return which is generally fairly straightforward on the government site.

One thing to consider is are you maximizing your existing company pension scheme as if you are using salary sacrifice then I would possibly increase the contribution into this scheme rather than contribute to the old scheme, as it would save on tax and NI for you and save on any admin for yourselves. Certainly something to check out.

Hope this helps

Thanks

Matt

Answered by

Matt Angell

Founder & Financial Planner

I am the founder of Creative Lifestyle Planning, an independent financial planning firm that works with many families across the UK. Matt specialises in helping families to answer those all important questions they have on their mind and helping many clients gain a clearer, simply understanding of when and how to they can retire.