Maximising Tax Breaks

With many financial years ends looming in the first quarter and the projections on turnover and profit being far more accurate than just pure projections, now is the time to look at extracting the company profits and maximising the tax breaks available, particularly from pensions.

• Lifetime allowance is now at £1,030,000
• Annual allowance is £40,000 (Remember this drops to £4,000 if the client has started to draw their pensions)
• Carry forward unused allowances from up to 3 previous tax years once this years' allowance has been used
• Mitigate tax charges on child benefit by making a pension contribution

Please note that many older pension pots can be considered for consolidation as the charging on new plans are highly competitive, whilst the fund and flexibility options are also more comprehensive.