Beever and Struthers’ Post

Find out more about pension tax relief, who is eligible and how to claim.

The more you earn, the more you stand to gain by taking full advantage of the tax reliefs and allowances available to you. The removal of several pension restrictions in the 2023 Spring Budget will, in general, have increased your options. #pensionplanning #taxrelief #lifetimeallowance

Find out more about pension tax relief, who is eligible and how to claim.

Many people don’t realise that accessing their pension benefits comes with a major ‘trap’. The standard annual allowance of £60,000 is reduced to £10,000 when someone takes taxable income from a defined contribution #pension (from the age of 55). This limit is known as the Money Purchase Annual Allowance (MPAA). Inadvertently triggering the MPAA can have major consequences, as this places a limit on all future pension contributions. Our bog article explains more: https://lnkd.in/eVRD7shk

Did you know that taking your pension as a lump sum could leave you with a huge tax bill? Read our blog, linked below, to find out what you need to know about tax and withdrawing lump sums from your pension.

RUMOURS OF PENSION CHANGES IN THE OCTOBER BUDGET Changes to pension tax relief seems to be top of the list of possible changes in the Budget and could yield more tax revenues than changes to CGT and IHT combined. As recently as 6 April 2023, we saw the abolition of the lifetime allowance charge and a significant increase in the pension annual allowance to £60,000 a year, which Rachel Reeves commented were too generous, so we may see those changes reversed or curtailed. Possible changes to pensions to listen out for include: • Limiting pension tax relief for individuals to basic rate or possibly a 30% flat rate; • Further limiting (or abolishing) the 25% tax free lump sum; • Freezing or reducing the £1,073,100 lump sum and death benefit allowance; • Making the undrawn pension fund subject to inheritance tax; and • Limiting the amount of employer pension contributions that can be paid by way of a salary sacrifice. Pension changes normally take effect from the start of the tax year on 6 April, however there have been mid-year changes in the past. Taxpayers should therefore consider bringing forward pension planning just in case changes are effective from the date of the announcement. If you'd like to discuss pension planning with us, feel free to get in touch: https://buff.ly/30whgCJ #AutumnBudget #PensionChanges #accountants #CloudAccountants #AccountingExperts #TheCloudAccountants #AdamFernandes

RUMOURS OF PENSION CHANGES IN THE OCTOBER BUDGET Changes to pension tax relief seems to be top of the list of possible changes in the Budget and could yield more tax revenues than changes to CGT and IHT combined. As recently as 6 April 2023, we saw the abolition of the lifetime allowance charge and a significant increase in the pension annual allowance to £60,000 a year, which Rachel Reeves commented were too generous, so we may see those changes reversed or curtailed. Possible changes to pensions to listen out for include: • Limiting pension tax relief for individuals to basic rate or possibly a 30% flat rate; • Further limiting (or abolishing) the 25% tax free lump sum; • Freezing or reducing the £1,073,100 lump sum and death benefit allowance; • Making the undrawn pension fund subject to inheritance tax; and • Limiting the amount of employer pension contributions that can be paid by way of a salary sacrifice. Pension changes normally take effect from the start of the tax year on 6 April, however there have been mid-year changes in the past. Taxpayers should therefore consider bringing forward pension planning just in case changes are effective from the date of the announcement. If you'd like to discuss pension planning with us, feel free to get in touch: https://buff.ly/30whgCJ #AutumnBudget #PensionChanges #accountants #CloudAccountants #AccountingExperts #TheCloudAccountants #AdamFernandes

Find out more about pension tax relief, who is eligible and how to claim.

Find out more about pension tax relief, who is eligible and how to claim.

Don’t make this mistake when it comes to you pension annual allowance ❌ The annual allowance is the maximum you can put into a pension and get tax relief 💷 In the 2023/24 tax year, this is now £60,000, having increased from £40,000 the previous year But the type of pension you have, will determine how you measure your annual allowance usage 👉 Defined Benefit – The annual allowance considers the growth in pension entitlement over the year. This is also known as the pension input amount. This is worked out as the difference between the opening and closing value of the pension, adjusted for inflation 👉 Defined Contribution – The annual allowance is based on total contributions made during the pension input period. This includes both personal and employer contributions Often, people wrongly believe their defined benefit scheme is based on the contributions rather than the growth 😮 This could potentially lead to an annual allowance tax charge and additional administration to correct with HRMC If you’re interested in maximising your pension allowances before the end of the tax year in a few weeks, then give me a call on 0151 346 2218 📞 or drop me an email to chrisdrew@endeavourfp.co.uk 📧 and let’s start building your future today #EndeavourFP #PensionPlanning #TaxEfficiency #FinancialFreedom A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation Approved by In Partnership FRN 192638 07/03/2024 Endeavour Financial Planning Limited is an appointed representative of In Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Registration number: 07527645 Registered in England and Wales