New Forest

16/03/2020

Pension Planning should be done before the end of the tax year

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer.

Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current year, but then lapses if unused. Hence the unused pension allowance for 2016/17 will lapse on 5 April 2020. Note that under the current rules the net after tax cost of saving £10,000 in a personal pension for a higher rate taxpayer is only £6,000.

Please see additional announcements made in the Spring Budget in March 2020.

For further information on Pension Planning, please contact Matthew Magee on 023 8046 1207.

Latest Tweets

Both the Academies Accounts Direction (AAD) and Academies Financial Handbook (AFH) were issued in June by the ESFA. We have produced our summary fact sheet on both for you in July!
https://www.hwb-accountants.com/news-guides/news/academies-latest-guidance/

Investors who wish to take funds from their Lifetime ISA (LISA) to support their income during the pandemic can benefit from a reduction in the withdrawal charge.

The charge, was reduced from 25% to 20% from March 6 and will apply until April 5, 2021.

https://www.gov.uk/guidance/lifetime-isa-withdrawal-charge-reduced-to-20

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