First year receiving pension income

This is one of those first-time moments that quietly catches clients out.

They’ve planned their drawings as usual, salary, dividends, thresholds all optimised, until something new appears: pension income.

Maybe it’s a full year of State Pension. Maybe it’s a small private pension kicking in. Either way, it suddenly changes the plan.

The tax they thought they were paying? Often double what was expected.

With Tax Torch, you can factor it in as soon as the client mentions it.

You can adjust the scenario, recalculate tax due, and help them decide how best to rebalance drawings for the rest of the year, before it becomes a year-end surprise.

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• Add the usual salary and dividends to the plan
  
• Insert the pension income under a new stream (e.g. £11,970 State Pension)
  
• Review how it changes tax, payments on account, and thresholds
  
• Use the Scenario Planner to reduce other income (e.g. dividends)
• Compare before and after tax impact and make proactive decisions

• When clients start receiving State or private pension income
  
• During annual income planning and reviews
  
• To prevent unexpected tax increases from mid-year income changes