Five Essential Steps To Take Before The Tax Year End

1. Take full advantage of tax relief on pension contributions

You are able to make contributions to pensions each tax year and receive tax relief on them. Tax relief is given at your marginal rate and, therefore, the more income tax you pay, the greater the tax relief on pension contributions.

There is a limit to how much you can contribute to pensions while receiving tax relief, though it may be possible to make use of unused pension allowances from previous tax years to further boost your pension funding.

Capital invested in a pension is also free from tax on income, dividends and capital gains. Together with the available tax relief, this makes pensions a highly efficient way to save and invest money over the long term while reducing your immediate tax bill if you are a high earner.