If topping up your pension is on your to-do list, now is the time to take it seriously.
With the tax year ending on 5 April 2025, the clock is ticking, and missing the deadline could mean missing out on valuable tax savings.
The taxman gives a helping hand (but only if you are on time)
Pension contributions come with a major bonus: Income Tax relief. You put money in, and the Government adds a little (or a lot) extra, depending on how much you earn.
You will receive the basic rate relief of 20 per cent and may be able to claim more depending on your income.
In short, the sooner you pay in, the better your savings work for you.
Use your allowance before it is gone
You can usually contribute up to £60,000 each year, and if you did not use it all in previous years, you might be able to carry some forward.
That could mean a much bigger boost to your pot than you thought possible.
Not everyone gets the full amount
However, there are two important limits to know:
- If you have started drawing from your pension, you might be capped at just £10,000 a year.
- If you earn over £260,000, your allowance could be gradually reduced.
Due to this, it is worth checking now what your actual limit is before making a move.
Don’t assume you have got until 5 April
Yes, that is the deadline, but your pension provider may have their own cut-off to make sure the payment goes through in time. If you wait until April, it could be too late.
Feeling unsure?
If you are not sure how much you can contribute or whether you should, do not leave it to guesswork.
We can walk you through the options, help you avoid the tax traps, and make sure your money is working as hard as you are.
For further pension and tax savings advice, please speak to our team today.