Tax Planning

Several deadlines are approaching in the coming days and weeks, which investors need to meet to take advantage of tax allowances.  Potentially save yourself some money this year and act now. The example below illustrates the financial benefit of meeting those deadlines.

Two different clients who planned to retire in April . Dave Waters and Andrew Noble were both self-employed and earning about £25,000 a year and both had £20,000 in cash savings apart from their pensions.

Dave took our advice and paid his £20,000 into his pension in March and received another £5,000 from the taxman by way of income tax relief, which gave his retirement a good start. It was important that he make this payment in March while he was still earning, as this allowed him to pay in up to £40,000 or 100% of his income (whichever is lower).

Andrew, however, missed the deadline and, as he had already given up work, could only pay in £2,880, bringing him tax relief of just £720. By missing the deadline, Andrew was worse oft to the tune of £4,280.

To avoid Andrew’s mistake, take careful note of some of the key deadlines for some of the major investment platforms.

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Contributions deadlines for each platform list below:

Platform

Deadline Date

Elevate Platform

Wednesday 24th March

Standard Life

Thursday 25th March

Aviva Platform

Thursday 1st April

Royal London

Thursday 1st April

James Hay

Monday 5th April

Transact

TBC

Withdrawal deadlines for each platform list below:

Platform

Deadline Date

Elevate Platform

Wednesday 10th March

Aviva

Monday 15th March

Royal London

Monday 15th March

James Hay

Thursday 18th March (by 5pm)

Standard Life

Tuesday 30th March

Transact

TBC

Now is the time to act in order to meet these key deadlines.

If you have any queries or problems then do get in touch with your Reeves Adviser, who will be only too happy to help.


The content of these articles are for information only and should not be seen as advice or recommendation to act. If you do wish to take action, seek independent advice first as your circumstances may be different to what has been discussed in these articles. When investing, your capital is at risk and it may go down as well as up. You may not get back the original capital invested. Pension investment should be seen as a long term investment. Please note that pension legislation can and may change in the future.

**Names have been changed from real client case studies, with written consent. All other names and studies are fictional to highlight our advice.

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