Our Tax Tip number seven is pensions.
Putting money into a pension is one of the most tax-efficient things you can do. And it’s investing in your future. Watch our video below for some more guidance.
You can put up to £40,000 each year into a pension and get tax relief. If you haven’t used your allowance in the past three years, you can carry this forward as long as you did have a pension in place.
The £40,000 limit is reduced if you earn over £150,000 – you lose £1 of tax-free allowance for each £2 you earn over the £150,000 threshold until the limit is reduced to £10,000. This happens if you earn £210,000.
There is also a lifetime allowance of £1.055 million for tax relief.
However, subject to sticking to these allowances, paying into a pension is a really wise and tax-efficient, thing to do.
If you would like any more information, please feel free to get in touch.