How To Get The Government To Give You Money
|Business : Tax|
If you work for your own company, then you should be sure to take out your SIPP pension each year.
The reason is that the government is so desperate for people to save (what with the Labour government or Gordon Brown having destroyed pensions), that they will effectively give you money back to save into your pension, in the form of not having to pay tax.
So if you are a high rate taxpayer you have the most to gain but even if not then you can still save a very nice amount.
The key realisation is that you effectively get the 22% or the 40% for free (20% for lower rate tax payers after April 5th 2008), and you only have until the deadline date to save for that year, you can't back-date so once the year is gone, then your allowance for that year is gone too.
Questions about pensions: