The Inland Revenue limits the amount you can pay into a personal pension in any one tax year. This is calculated as a percentage of your annual net relevant earnings (subject to the earnings cap). If you are an employee, your net relevant earnings are your earned income, while if you are self-employed these are normally your profits less business expenses. As you get older (and therefore nearer to retirement), the percentage increases. Where your earnings have been higher in one of the five previous tax years you may also be able to base your personal pension/stakeholder pension contribution in tax year 2005/06 on those higher earnings. Anyone under the age of 75, who is not a member of an occupational scheme, may contribute up to £3,600 per annum into a personal pension plan without evidence of earnings.
Where an individual is a member of an occupational scheme and is not othwerwise eligible to contribute to a personal pension scheme, he/she, depending on the level of his/her P60 earnings in tax years 2000/01 to 2004/05, may be able to make a concurrent contribution of up to £3,600 to a personal pension/stakeholder scheme in tax year 2005/06.
Retirement is one of the most important events that you will ever plan for, so it realy does make sense to take an independent review of your situation. Don't think that you have plenty of time or just leave it to chance - please e-mail or contact us.
Levels and bases of, and reliefs from, taxation are subject to change.
|
