Private pension contributions are tax free up to certain limits.
- You pay 0% tax if you contribute 100% of your annual earnings to a private pension.
- You get an annual allowance of £40,000.
- You get a lifetime allowance of £1,073,000.
I like paying tax as much as you do!
Income tax is tax you pay on income... But listen you don't have to pay tax on all types of income.
Here's a few :
- the 1st £1,000 of self employment
- the 1st £1,000 of rental income
- income from ISA's
- dividends from company shares