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What is Carry Forward?
Carry forward is a pension contribution tax rule. It allows you to pay pension contributions in excess of the standard annual allowance (£60,000) for the current tax year. Here are 5 Key Points The standard Annual Allowance (i.e. maximum pension contribution) for the current tax year (2023/24) is £60,000. In earlier tax years it was £40,000. You have to have an existing pension you’ve contributed to even if you no longer pay into it. You
Business Owners: Does the Tapered Annual Allowance apply to you?
The Tapered Annual Allowance applies to anyone with a high income and intending to contribute to a pension. It’s particularly relevant for successful entrepreneurs who want to use company pension contributions as part of their tax planning strategy: Does this Scenario Sound Familiar? Your business is making some good profits and you’ve got some surplus cash available. You’ve been drawing a basic salary and receiving additional income from dividends. You expect your total income in
Company Pension Contributions: Tax Savings for Business Owners
Do you run your own business? If so, it’s essential to know how to use your pension fund for tax planning. Most entrepreneurs keep more money in their business than personal accounts. They often pay themselves a small salary and use dividends to supplement their income. Keep in mind, dividends don’t count towards pension contributions. In this blog, we’ll delve into the role of company pension contributions in your financial planning. Navigating Pension Contributions and
Dividends and Pensions: An Easy Guide for Business Owners
Dividends and Pensions: An Easy Guide for Business Owners Are you a small to medium-sized business owner? Has your accountant recommended you to draw a lower salary and higher dividends? If so, have you considered maximising tax reliefs through larger company pension contributions? Understanding Your Annual Pension Contribution Limit For the current tax year, ending on 5th April 2024, the standard annual pension contribution limit, known as the Annual Allowance, stands at £60,000. You might
The Value of a Financial Adviser: Beyond Investments
Most people believe financial advisers are solely focused on investing their money. However, their true value goes far beyond that. Expert Guidance and Emotional Balance A financial adviser serves as an expert guide, offering a check-and-balance system to your decisions and providing a rational perspective when emotions come into play. Unlocking Years of Experience: Time and Energy Savings By leveraging their extensive experience, financial advisers save you valuable time and energy that would otherwise be
