pension tax relief

Three in four willing to pay more in income tax to tackle coronavirus debt

The majority of UK workers are willing to stomach an income tax rise in order to help pay down the escalating costs of fighting coronavirus.

According to a survey by pension provider AJ Bell, which had 2,001 respondents, over three-quarters (77%) accept that increasing income tax is the price that must be paid to reduce the expected £300 billion increase in UK government debt following the lockdown of the majority of the economy.

Pension Clinic: beware the £4,000 pension contribution trap

Once upon a time, the government decided it wanted to simplify the rules around pensions and tax. There were going to be simple annual and lifetime limits on pension tax relief, and lots of the old complexity was going to be swept away. This was in 2006.

But since then, far from leaving things alone, successive governments have tweaked and fiddled with the rules, which mean that it can be a nightmare for law-abiding citizens even to understand what they can and cannot do.

Government tries to ‘sneak out’ figures showing how much tax pensioners pay

The government has attempted to “sneak out” statistics showing how much pensioners pay in tax, according to former pension minister Steve Webb, who is director of policy at Royal London.

Figures published at the end of April purported to show that pensioners paid £17.9 billion in income tax on their pensions in 2016/17 and £18.4 billion in 2017/18.

Make the most of pension tax relief before it is too late

Anyone over 40 is now entitled to a free NHS mind and body health check every five years, at which they might expect to receive the cheerful advice – “use it or lose it”. A wealth adviser or manager looking to keep your finances in top condition might declare the same of your pension.