Tax Efficiency

Most people know that you receive basic rate tax relief on pension contributions. In effect, this means that you only pay £80 for every £100 that goes into your pension ‘pot’, as the pension company claims the additional £20 from the Government.

Claim the tax rebate that 80% of people miss!

But did you know that, if you’re a higher rate tax payer, you can claim the additional income tax so that each £100 in the ‘pot’ only costs you £60? Clearly not everyone is aware of this, as Her Majesty’s Revenue and Customs estimates that 80% of taxpayers who could claim back the higher rate tax don’t do so.

The 3600 rule

Even if you don’t pay income tax at all, it’s worth contributing to your pension. Put £2880 in each year and the Government will make it up to £3600 for you. It’s that simple.
To find out how to make your pension more tax-efficient, please call us on 01908 260418 or book onto one of our free seminars.