PENSION TOP UP – COULD BE TOP ADVICE

Normally, between you and your employer, you can pay a maximum of £40,000 into your pension in a tax year (it’s called your annual allowance) before it becomes subject to tax. You can take steps to maximize your pension pot – Here are some things to consider …

1 | Carry it forward

If you don’t manage to make full use of your £40,000 pensions annual allowance this tax year, in some
circumstances you can carry it forward for up to three years.

2 | Boost your basic

You can also boost your basic State Pension by paying voluntary Class 3 National Insurance Contributions (NICs).

3 | Personal Allowance

Everyone is entitled to a tax-free Personal Allowance. This is the amount of income you don’t pay any income tax on, and for 2019/20 stands at £12,500. But you begin to lose this when you earn over £100,000** (and you don’t get anything if you earn £123,000 or more).

Normally, between you and your employer, you can pay a maximum of £40,000 into your pension in a tax year (it’s called your annual allowance) before it becomes subject to tax.

Other topics covered in this quarters newsletter

  • How to – Limit life inheritance tax
  • Including funeral wishes in your will
  • Your ISA allowance use it if you can
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