Case study – How one financial guidance clinic helped a newly qualified law firm associate optimise his finances

With the annual benefits window approaching, Ben wanted to make informed decisions about his pension and savings. He was keen to plan for upcoming life events while understanding how tax efficiency and financial planning could improve his overall financial situation. 

Ben was unsure how his pension contributions, tax relief, salary sacrifice, and student loan repayments interacted, leaving him uncertain about the best steps to take. 

Ben’s law firm offers a quarterly financial guidance clinic. He attended a 30-minute meeting with one of our expert Financial Advisers for the first time. 

During the session, the Adviser explained how the pension scheme and salary sacrifice arrangements could help reduce taxable income. The Adviser also showed how changes to income might affect student loan repayments. Ben was guided through how income between £100,000 and £125,140 can face a higher effective tax rate and what this means for him. It was also noted that his tax code, 1257L, may not be correct and contacting HMRC could be worthwhile. 

The meeting gave Ben practical, easy-to-understand guidance and new information he had not considered before. He left feeling confident in making decisions about his income and savings. 

Ben now understands the benefits of reducing taxable income and how increasing pension contributions can improve tax efficiency. He recognises that using salary sacrifice for a substantial reduction in taxable income may not be practical this year, but he sees the value in increasing contributions. Ben is aware of the importance of monitoring his tax position and plans to book a follow-up session before the next tax year.