🚨 Attention, UK taxpayers! 🚨 Did you know millions might not be claiming the pension tax relief they’re eligible for? With the 31st January self-assessment deadline looming, it’s crucial to make sure you’re not leaving cash on the table!
Many higher-rate taxpayers wrongly assume that all pension tax relief is automatic. However, unless you claim it, HMRC won’t return that extra cash! Most personal pensions add basic-rate relief at 20%, but if you’re in the 40% or 45% tax bracket, you’re entitled to more. 🎯
Here’s a simple checklist to see if this affects you:
👉 You earn above the basic-rate tax threshold.
👉 You pay into personal pensions or workplace schemes using the relief at source system.
👉 You’re not involved in salary sacrifice or net pay arrangements.
With frozen tax thresholds since April 2021 and no changes planned until at least 2030, the number of those affected has soared. Around 7.1 million people will be paying higher-rate tax this year alone, and nearly 1.23 million face the additional 45% rate. 🌟
For higher-rate taxpayers making significant pension contributions, the benefits can be huge! For instance, a £10,000 contribution might only cost £6,000 if all relief is claimed. If you’re unsure which system your pension scheme uses, check now and avoid overpaying! 💡
Remember, the January 31 deadline doesn’t mean you need to make new contributions, but it’s your last chance to declare income and secure tax relief for the previous year.
Take control of your finances and ensure you’re getting the tax benefits you deserve! 💷
Need to make a claim? Record your pension contributions in the relevant section if you’re submitting a tax return. If not, you may be able to claim directly with HMRC. Gather your contributions and provider details, and make that claim!
Spread the word and don’t let HMRC pocket more than you need to pay! 📢 #HMRC #TaxRelief #PensionContributions #SelfAssessmentDeadline