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We have become aware that there has been a small amendment by HMRC which has the effect of slightly increasing the contributions on which you can obtain 40% tax relief in the current year from £20,000 to £30,000 in certain circumstances.
The position is as follows:
If the pension contributions you have made in previous tax years have not been ‘normal regular’ contributions (i.e. not monthly or quarterly), the contributions you make in the current year on which you are entitled to claim 40% tax relief are restricted to £20,000.
The subsequent amendment says that where you have made ‘infrequent contributions’ (i.e. less frequently than quarterly) and where these have averaged at least £30,000 per annum in the years 2006/07 to 2008/09 inclusive, you are able to claim 40% tax relief on contributions in the current year of up to £30,000 in total.
In summary therefore, if the amounts and frequency of your contributions have been as above, you will be able to claim higher rate tax relief in the current tax year on pension contributions of up to £30,000 in total and tax relief on the contributions exceeding £30,000 will be restricted to basic rate relief.
If you have been making either monthly or quarterly contributions in recent years, then you will be entitled to continue to claim 40% tax relief on those same levels of continuing contributions in the current year.
If you have any queries in this respect please do not hesitate to contact us
I wanted to write and express our gratitude for your help and hard work in getting Probate through and settling all the taxes. I am so pleased that we selected RJP, as your professional help and updates throughout this process have been invaluable. If at any time in the future Probate assessment may be needed, you will be our first port of call. Once again, many thanks to the whole team.
Dan Cook, Probate clientI just wanted to drop you a short note to say how grateful I am for the support that RJP has provided over the past 4 weeks while our Financial Controller was away. I struggle to comprehend how much work your staff get through during their weekly visits and they are always a pleasure to have around the office.
I Evans, CFO, MoblicitiJust a quick e-mail from me to thank you for achieving the target for producing the draft accounts – it is very much appreciated and gives a first class impression of your firm. Many thanks.
J Stanfield, Chairman, BBS Actuaries LtdI would like to take this opportunity to thank you very much for the amazing job you have done navigating us through this whole process. My family and I also really appreciate the care and compassion demonstrated by you and your team in every dealing. Our thanks to everyone.
M Goldsmith, Probate ClientRJP provide our company with a complete service which takes the stress and strain away from the day to day running of our accounts! Their understanding of our business and their patience and advice is invaluable.
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