UK Pension Plan Update

With the start of the year, it is time again to review your contribution to your UK Pension Plan.  In this update are reminders of the UK Government’s contribution to your pension and also limits to how much you can contribute before you are penalised.

UK government to add to your pension contributions

Even though you are living outside the UK, if you have been away for less than five UK tax years, than you can still make a contribution to a UK Pension Plan and the UK Government will add up to GBP £720 to your contribution. You need to contribute before the end of the UK tax year, 5th April, to get your annual entitlement.  If you are not already taking advantage of this opportunity and require assistance in doing so, please contact Tax Associates International and we will be happy to help you.

Tax penalty on exceeding contribution limit

If, on the other hand, you are still enjoying contributions from your employer to a UK scheme, you should note that the amount of contribution that can be made by you or on your behalf is now limited to GBP £50,000, above which, you will suffer 55% tax penalty on any contribution made for you. If you believe that your employer is still contributing for you, please contact us for advice.

Not yet saving for eventual retirement?

Tax Associates International can provide advice on how to get started and how retirement savings can be made efficiently.

Contact Info

Please contact us if you would like to discuss with us regarding any of the above.