Are you aware of how your pension can cut your personal tax bill? To find out more information about the benefits of using your pension to reduce your tax bill continue reading below.
What do I need to know about my Pensions?
You should know that if you contribute to an annual pension, you can contribute up to £40,000 in 2019/20.
If your income exceeds £150,000 in 2019/20, your annual allowance will be reduced by £1 for every £2 that exceeds the threshold, to a limit of £10,000.
If your entire income is below £110,000 in 2019/20 then you will be able to retain your entire allowance.
You should note that the total amount that you are allowed to save over the course of your life is £1.055 million, but there will be a tax charge if your pension exceeds this limit.
You should make sure that you priorities your financial planning, if you need any advice then please get in touch and we can help you.
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