Pension Savings
Subject to thresholds, contributing into a pension scheme can be a great way of reducing your tax bill (both personal and company) and saving for your future.
Planning ahead
It's a win-win situation as instead of paying over your hard-earned money to HMRC in the form of a tax bill, you get to invest it in your pension pot, saving up for that wonderful retirement you're planning.
You can check your state retirement age here.
How much can I save?
You can put as much as you want into your pension pot, but there are limits on the tax relief available.
For the 2019/20 tax year you will get personal tax relief up to 100% of your earnings (or £40,000), whichever is lower.
You can also carry forward unused allowances from the prior three years, something worth considering if you want to top up your pension pot.
Note that pension tax relief is restricted if you earn over £150,000.
There is also a lifetime allowance to consider.
This currently stands at £1,055,000.
Any amounts above this are subject to a tax charge when taken out.
If you would like to discuss your pension / tax planning, contact us for further advice.