Get personal tax relief at top rates!
- For those who are higher or additional rate tax payers this year, but are uncertain of your income levels next year, a pension contribution now will secure tax relief at your higher marginal rates.
Typically, this may affect employees whose remuneration fluctuates with profit related bonuses, or self-employed individuals who have perhaps had a good year this year, but aren't confident of repeating it in the next. Flexing the carry forward and pension input period rules gives scope for some to pay up to £230,000 tax efficiently in 2014/15.
- For example, an additional rate taxpayer this year, who feared their income may dip to below £150,000 next year, could potentially save up to an extra £5,000 on their tax bill if they had scope to pay £100,000 now.
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