Tax saving tipsTax saving tips for the end of the tax year.

As usual, it’s busy in the world of financial services. We are approaching the end of the tax year and it’s the last chance to make pension contribution recommendations for a number of our clients. The 60% tax rate for those whose annual income falls between £100,000 and £116,210 can be recovered by a pension contribution making this a valuable tax saving .

The same can be said for anyone who will be losing their child benefit; a pension contribution could reduce your taxable salary and leave you still entitled to child benefit.

If you are suffering 50% income tax I am sure you are aware that this will fall to 45% from April. This does mean, however, that you can get 50% tax relief on any pension contribution you make before the tax year end. Even if you withdrew your contribution immediately afterwards you would be entitled to 25% tax free cash, then the balance at a rate of 45% income tax.

That’s pretty effective tax planning. As always though, individual advice is very important, so give me a call with any individual queries.

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