Higher Rate Pension Savers Are Missing On Extra Cash

By Author: jim mccarry
Total Articles: 37
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The people who are paying high rate taxpayers are actually losing a collective sum of 296 million pounds in a year because they fail to make a claim of higher rate tax relief on their pension contributions. This is what the new research has to say. According to this autonomous research, the average higher rate taxpayer loses a sum of 1020 pounds in a year as he or she does not make a claim of the relief. Only 22 per cent of those people who were questioned had to say that they did make a claim all of the relief that they were entitled to as they were well aware of this thing.
The figures from HMRC pointed out that that 55 per cent of the estimated number of 900,000 higher rate tax-payers in the United Kingdom made a contribution to defined the contribution pension schemes. This category of people has an average salary of 51,580 pounds as well as they make a contribution of 425 pounds each and every month on average. The very basic rate of 20 per cent of the tax relief is received on its own at the source as well as its worth is 85 pounds on a monthly contribution of 425 pounds. But the additional 20 per cent relief which ...
... is made available for the higher rate taxpayers that goes unclaimed at most of the time has a worth of another 85 pounds in a month or 1,020 pounds every year.
The firm Prudential which commissioned this research, had to say that that if the people act before the ending of the month of January next year, they will be making a claim for their pension contributions going back as far as the 201/11 tax year, in case they are required to fill in a tax return in that very year. The ones who do not need to do a tax return can make a claim for the relief for as far back as the years 2008-09 if they act before the ending of the month of October of the present year. You can fetch easy cash through 1 month loan @ http://www.1monthloanuk.co.uk/ and pay you important debts.
The people who are the members of occupational pension schemes receive basic as well as higher rate tax relief on its own via their payroll. But the members of personal pension schemes, inclusive of GPPs that is Group Personal Pension Schemes, SIPPs that is Self Invested Personal Pensions along with the stakeholder pensions, only receive basic rate of 20 per cent tax relief on its own.