Firstly, you should consult a Financial Advisor when deciding to set up a pension scheme. Currently, if the Company pays for the contributions, you and your spouse will effectively share the tax relief. However, if you make the contributions from your own income...
To get the maximum Basic State Pension, you must have 35 qualifying years (which means you must have made National Insurance contributions for 35 years). For the current tax year – 2022/23 – this would mean a salary of more than £6,396. Above this figure, you start...
If you are thinking of taking a lump sum from your pension fund, you should definitely talk to your accountant to go through the tax issues. Pension lump sums are taxable income so it is important to minimise the tax you pay or the extra tax cancels out the tax...
The general rule is: For pension contributions, there is an Annual Allowance (of £40,000 for 2020/21) which is the maximum one can pay into a pension scheme in a tax year. If you (or your employer) don’t use all of the Annual Allowance, then you can carry...
Since April 2015, people with private pension funds have had far more freedom about what they can do with their “pot” and many more people are taking advantage of this. They are able to take their whole pension as a lump sum without having to buy an annuity or similar...
There are a few issues that we regularly see around the subject of tax on pensions: Employees earning over £50,270 (the Higher Rate Tax threshold for 2022/23), sometimes think they will automatically obtain tax relief on their contributions when they pay into a...
