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.
