Need some tax advice
Discussion
Having just completed my 17/18 tax return its dawned on me that for 18/19 due to a number of factors I’ll exceed the earning limit which will mean i’ll probably lose most, if not all my pension tax relief as it starts tapering off.
I know there are various investment options which can legitimately be used to offset against income tax, but i have no idea where to start.
Any recommendations for someone who could provide advice on tax and investments?
Just checking what you mean:
The "Annual Allowance" for pension contributions is £40,000 each year (i.e. that is the maximum you can contribute and get tax relief - you can contribute more but you won't get tax relief).
It starts to "taper" at £150,000 income, reducing to just £10,000 if your income is over £210,000.
Income definition is basically taxable income plus pension contributions.
So you are saying that you will earn over £210,000 and thus can only contribute £10,000 to your pension in that tax year?
As Purple Moonlight said, first think about whether you have any carry forward (i.e. unused Annual Allowance from the previous three tax years).
The "Annual Allowance" for pension contributions is £40,000 each year (i.e. that is the maximum you can contribute and get tax relief - you can contribute more but you won't get tax relief).
It starts to "taper" at £150,000 income, reducing to just £10,000 if your income is over £210,000.
Income definition is basically taxable income plus pension contributions.
So you are saying that you will earn over £210,000 and thus can only contribute £10,000 to your pension in that tax year?
As Purple Moonlight said, first think about whether you have any carry forward (i.e. unused Annual Allowance from the previous three tax years).
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