How To Calculate Pension Contribution Tax Relief

Описание: When you make pension contributions the taxman will top up your savings by paying cash directly into your plan. That means for every £80 you invest, the taxman will put in an extra £20, or 20%.

Your contributions are treated as having been paid out of income that has already been taxed at the basic income tax rate of 20%. The taxman is therefore refunding the income tax you’ve already paid.

The company that manages your pension plan will claim this money for you from the taxman and credit it to your account, so you don’t need to do anything, unless you’re a higher rate taxpayer.

Other videos about pensions you might like:    • Pensions  

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