Pensions and tax
While the system of pensions taxation and tax relief should be straightforward for most people, some may need a bit more help
If the total contributions made to your pension scheme(s) are below the level of the annual allowance and, the value of all of your pension schemes are below the lifetime allowance, the systems of taxation and tax relief for your pension scheme(s) should be fairly straightforward.
However, if you have large earnings and are a higher-rate or additional-rate income tax payer, or the value of your pension scheme(s) is approaching the lifetime allowance, you may need further help and should consider consulting an independent financial adviser or an accountant.
If you have children and are subject to the High Income Child Benefit charge, making additional pension contributions could save you tax. Similarly, if your income is above £100,000, additional pension contributions could help free up some, or all, of your personal allowance and save tax.
If you think that you may have a problem with tax and your pensions, you can ask your pension provider or scheme administrator for help first.
Other places for help
There are also other places you can look for help, including:
HMRC - You can talk to your tax office or go to www.hmrc.gov.uk and look under ‘Individuals and employees’. HMRC also has helplines, where you can talk about your problem and get help..
Money Advice Service - Is a Government organisation and they may have the information that you need. You can ‘ask MA’ here.
TaxAid - Is a charity designed to help people on low incomes (up to £20,000 p.a.) with tax problems. You can talk to them on 0345 120 3779 between 10.00 am and 12.00 midday on weekdays or go to www.taxaid.org.uk for more details.
There are many other websites where you may find advice and guidance, but do treat information that you find with care – it’s always worth checking with other sources before you make any financial decisions, and, if you’re still unsure, do consider seeking professional financial advice.
Where can I find out more?
If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.