Make use of your Annual Pension Allowance
- If you’ve used your full allowance in the current tax year but not in recent years, you may also (depending on your circumstances) be able to ‘carry forward’ any annual allowance which you haven’t taken advantage of in the three previous tax years. There’s also the Lifetime Allowance to consider.
- The limit on the amount that can be contributed to your pension each year while still getting tax relief for the 2021/22 tax-year, for most people it’s £40,000, or the value of your whole earnings – whichever is lower.
Did you know
- Pensions are now more flexible than they have ever been and remain extremely tax-efficient. You’ll receive tax relief at the basic rate of 20% on contributions made to personal and workplace pensions.
- If you’re a higher or additional rate taxpayer, you can claim back up to an additional 20% or 25% through your self-assessment tax return.
Keep an eye out on the next planning tip.
