Tristan Noyes points out that saving for the future can be boosted by tax reliefs and explores some options and their advantages.
Starting a new tax year brings an opportunity to review savings and investments to make sure you maximise tax reliefs. Here’s a brief overview of some key things to consider.
Pensions
The government encourages retirement saving, requiring employers to auto-enrol staff in workplace pensions and to make contributions. Payments made by you or your employer can receive full tax relief, and salary sacrifice schemes can also reduce National Insurance contributions (NICs).
You cannot make withdrawals until age 55 (58 from April 2028) but income and growth are tax free. When you do make withdrawals, these are taxed as income, but you may be in a lower tax band at that point or able to time withdrawals to reduce the tax. You
