Don’t forget to claim tax relief on pension contributions!

December 12, 2019

No one wants to hand over money, do they? So, don’t forget to claim the extra higher rate tax relief that is available on pension contributions.

There are a few things you can do if you’re a higher earner. Take Mr A as an example…

Mr A will earn £60k in the 2019-20 financial year. He’ll pay 40% tax on £10k of that. During the year he’ll put £15k into his private pension and automatically get tax relief on that full £15k.

Mr A can also claim an extra 20% on £10k (the amount he paid the higher tax rate on) through his self-assessment tax return.

Talk to your accountant. Maximise your tax benefits.

Just ensure that your pension provider is registered with HMRC to ensure you qualify for this benefit.

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