Are You Claiming All Your Tax Breaks ?

22/11/2013

The Prudential recently published a survey highlighting that many higher rate taxpayers do not claim higher rate relief on their pension contributions..

The main results of the survey concluded:

  • 26% of employees earning more than £41,451 do not claim the higher rate income tax relief on their pension contributions.
  •  This equates to an estimated 185,000 higher rate tax payers failing to maximise their tax relief.
  •  The average loss to a higher rate tax payer as a result of not claiming this higher rate tax relief is £1,255 a year.
  •  The total “lost” tax relief amounts to £229 million.
  •  There is a further 15% (over 100,000) higher rate tax payers who are unsure if they are reclaiming the higher rate tax relief to which they are due.
  •  The majority of higher rate tax payers are making personal contributions of 10% of their salaries, the average of which is a little over £62,000, making the potential tax loss at over £100 a month.

 

If you would like our tax advice team to assist you with your tax return, including claiming pension tax relief for previous years contributions, please contact us >>

 

 

By Tony Czypionka | Accountant and Tax Adviser

Tony is the Accountant and Tax Adviser at Mantle Financial Planning Read more >>

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