PAGES: 249
EDITION: 11th
ISBN: 9781911020660
STATUS: IN STOCK
Pension Magic
How to Make the Taxman Pay for Your Retirement
Pension Magic shows you how to build a big retirement pot by securing thousands of pounds of extra tax relief on your pension contributions.
The 11th edition was published in April 2021 and is completely up to date. It contains full details of ALL the major pension changes that have taken place in recent times.
Pension Magic is written in plain English with dozens of real-life examples. It is essential reading for:
- All self-employed individuals and landlords
- All company owners
- Salary earners (except those with final salary pensions)
- Non-working spouses
- Accountants and financial advisers
Higher-Rate Tax Relief
There were fears the Government would scrap higher-rate tax relief, which allows savers to enjoy 40% tax relief on their pension contributions.
Fortunately no announcement was made, so we can continue to enjoy this valuable tax relief...for now.
The Government did announce that the income tax higher-rate threshold (currently £50,270) will remain frozen for the next five years. This means that, as your income rises, more and more of it will be taxed at 40%.
The upside is that you can beat this tax increase by making bigger pension contributions. Pension Magic explains how to maximise your higher-rate tax relief... and in some cases enjoy more than 40% tax relief.
The Lifetime Allowance
The Government also announced that the lifetime allowance (the total amount you can save in pensions) will remain fixed at £1,073,100 for the next five years. This guide contains a whole chapter on the lifetime allowance, showing why it is not a threat to most pension savers.
Corporation Tax Increase
One of the biggest announcements was an increase in the corporation tax rate from 19% to 25% in April 2023.
Pension Magic explains how you will be able to beat this tax increase by getting your company to make pension contributions. In many cases company owners will be able to pay themselves pension contributions which will eventually be taxed at no more than 15%, compared with dividends that may face a combined tax rate of 50% (income tax and corporation tax).
What Information is Contained in the Guide?
Subjects covered include:
- All relevant tax changes announced in the March 2021 Budget.
- A plain-English guide to the pension rules:
- How much you can put in
- How and when you can take money out
- How to maximise your tax savings at each stage
- Why pensions are the best tax saving device for salary earners and business owners... with full Government backing!
- Why higher-rate taxpayers will typically enjoy 41.67% more income by putting their savings in a pension instead of an ISA.
- Why pensions are now one of the best inheritance tax shelters and can be used to pass wealth tax free down the generations.
- How a couple can increase their retirement income by over 30% by correctly choosing who makes pension contributions.
- Pensions vs buy-to-let - Detailed examples showing the benefits and drawbacks of using your pension savings to invest in property.
- How to boost your income by 77% by investing in a Lifetime ISA first and then a pension, thereby enjoying two rounds of tax relief!
- How to make a backdated tax relief claim (many taxpayers do not claim all the tax relief they are entitled to).
- How a parent with three children can enjoy 66% tax relief - i.e. £3,278 on a £5,000 pension contribution.
- How to enjoy income tax relief and national insurance relief (including the 13.8% paid by your employer) with a salary sacrifice pension.
- How basic-rate taxpayers can increase their pension pots by 33% by postponing their pension contributions.
- How to calculate your ideal pension contribution (the one that saves you most tax) if you are a higher-rate taxpayer.
- Pension strategies for high income earners (income over £100,000).
- Full details of the tapered annual allowance, including the major changes announced in the March 2020 Budget.
- Pension strategies for business owners, including:
- Why getting your company to make pension contributions is better than making them personally.
- Why company pension contributions are a highly tax-efficient way to extract money from your business.
- Why company pension contributions will become even more attractive when the corporation tax rate increases.
- Pension tips for sole traders and other self-employed individuals.
- The benefits and drawbacks of putting commercial property into a pension.
- How you can use your pension savings to make a loan to your business.
- How to give your children or grandchildren a retirement pot worth over £1 million.
- Full details of the Pension Freedom rules, including how flexi-access drawdown works.
- How to avoid the money purchase annual allowance which could limit your pension contributions to just £4,000 per year forever.
- How landlords can reverse the big cut in their mortgage tax relief by making pension contributions.
- How to avoid being hit by the pension recycling rules - rules that try to prevent you getting two rounds of tax relief.
- The lifetime allowance - a whole chapter explaining how it works and whether you are in danger of exceeding it.
Click here to view the contents pages and first section of the book
About the Author
Dr Nick Braun founded Taxcafe in 1999. Over the past 21 years the company has become one of the UK's best-known tax publishers and has won several prestigious business awards. Nick has been a specialist tax writer since 1989, first in South Africa where he edited the monthly Tax Breaks publication and since 1999 in the UK, where he has authored several tax books. Nick also has a PhD in economics from the University of Glasgow where he was awarded the prestigious William Glen scholarship and later became a Research Fellow.
Free Bonus Tax Guide - How to Save Tax 2021/22
When you order this guide you will also receive a FREE copy of How to Save Tax 2021/22.
This comprehensive tax guide contains 165 pages of tax saving tips. It is completely up to date with all the latest tax changes announced in the March 2021 Budget and all previous Budgets - essential reading for anyone who wants responsible, tried and tested tax planning ideas.
Please click here for more information on this excellent bonus e-book.
What Will I Receive?
- Printed Book Orders - 249 page professionally printed book plus FREE PDF copy (immediate download)
- eBook Orders - 249 page PDF book (immediate download)
- All Orders - A FREE copy of our bonus guide How to Save Tax (immediate download)
- 100% Money Back Guarantee - Full refund if you are not entirely happy with your purchase
- Free Postage - Printed books are posted same day. Postage to UK and EU only.
