Accountants Chester – Tax Tip No. 59
Maximising Your Pension Before April: Expert Help for Chester Residents
With the tax year-end approaching on April 6th, 2024, now is the time to review your pension contributions and ensure you’re making the most of potential tax benefits. Don’t let unused annual allowances from the 2020/21 tax year and onwards go to waste – the deadline to act is fast approaching.
Why Expert Accountants Chester Make a Difference
Navigating the intricacies of pension contributions, especially under the changing regulations, can be daunting. Accountants in Chester specialize in offering tailored guidance based on your unique financial circumstances. Let’s break down why their expertise is essential:
- Understanding Earnings Caps: Tax-relieved personal contributions to pension schemes come with a 100% earnings cap (or £3,600 gross as a minimum). Accountants Chester can assess your income, especially involving company dividends, to optimize your contributions.
- Navigating Annual Allowances: Currently at £60,000, your annual allowance can be tapered if your income exceeds certain thresholds. A skilled accountant in Chester calculates available allowances for the current year and advises on utilizing unused ones from previous years.
- The ‘Money Purchase Annual Allowance’: Reduced allowances apply when accessing a pension from age 55. Expertise from Chester accountants clarifies these thresholds, preventing unforeseen tax charges.
- The End of Lifetime Allowance Charges: Since April 2023, this shift opens up more opportunities, even for those surpassing the standard £1,073,100 pension sum. A savvy Chester accountant will explore all the ramifications for your situation.
Don’t miss out on optimising your pension contributions before the April 6th deadline. Seek out trusted guidance from accountants Chester to secure the most favorable tax outcomes for your retirement savings.
Let us know if you have any questions or specific aspects of pension contributions you wish to explore further. Your financial future is worth protecting!
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