New announcement. Learn more


News and advice to help make your property business a success

Landlords TaxProperty TaxLandlords Tax ReturnsProperty Tax ReturnProperty AccountsLandlords AccountsTax ReturnsChartered AccountantsOnline AccountantOnline BookkeepingOnline Tax ReturnsYour Online AccountantYour Online BookkeeperBusinessadviceAccountingTaxCashflowProperty AccountantSmallbusinessBusinesstipsTaxplanningVATCgtFurnished Holiday LettingsInheritance TaxLandlords AccountantPropertyProperty bookkeeperTaxreturnAnnual Exempt AmountBusiness RateCapital AllowancesCapital gains tax propertyComplianceDeductibleexpensesDisincorporationEmployment AllowanceFinanceFinancialmanagementHoliday Lets TaxLandlords FinancialMaking Tax DigitalMakingTaxDigitalMileage AllowanceMobilephonesOverlapreliefPensionPprProperty Company TaxProperty Tax Deductible ExpensesPropertyallowanceRent a Room ReliefSDLTSmall BusinessTimetoPayVAT invoice60 day capital gains limitAbolitionclass2AccrualsbasisAcquisitionsAdvisoryfuelratesAIAirBnBAllowable Business ExpensesAlphabet sharesAmapAnnual Tax on Enveloped DwellingsAppealArtificial intelligenceAssessmentAsset disposalAssociated CompanyAssociated Company Tax RulesAutumnstatementBad DebtBad Debt Tax ReliefBaddebtsBadgesoftradeBeancounterBenefits in KindBreakeven PointBudgetBusiness adviceBusiness asset defermentBusiness coachBusiness ContinuityBusiness EntertainmentBusiness ExpensesBusiness Rates ReliefBusiness tipsBusinessgrowthBusinesstypesBuy or Lease EquipmentBuytoletCapital Allowances for CarsCapitalallowancesCapitalexpenditureCar Capital AllowancesCarry Back LossesCashbasisChange of Tax BasisChatGPTCIS SchemeCommon TenantCompanies ExpenditureCompanies HouseCompany Account DeadlinesCompany Account FilingCompany Strike OffCompany Tax Efficient PropertyCompanyassociationCompanyloanstaxfreeCompulsory Strike OffConstruction Industry SchemeContacthmrcContentmarketingCorporation Tax LossesCorporation Tax New RegimeCorporation Tax RatesCorporationTaxCostsCryptocurrencyCustomerlistimplicationsDeductible Business ExpensesDepreciationDevelopmentDirectorsDirectors LoansDirectorsloansDisallowable Business ExpensesDiscoveryDividend allowanceDividend Allowance ReductionDividend PlanningDividendallowanceDividendsDLADomestic Items Tax ReliefDormantcompanyEmployee DiscountEmployee managementEmployeecompensationpaymentsEmployeeOwnershipTrustEndoflifeplanningEnquiryEnterpriseResourcePlanningEntrepreneurmindsetEquityExpensesExpenses Allowed For TaxExtrabenefitEyetestsFHLsFlippingFurnished Holiday Lets TaxGift AidGiftsGrowthhacksHelp to pay tax billsHICBCHMO Licensing FeesHMRC complaintsHoldoverreliefHoliday Lettings TaxHow to apply for a Business LoanHow to Extract ProfitHumourHybridIhtexemptionsIllegaldividendsInfluencersInheritance Tax Nil Rate BandInterestreliefInterestrestrictionInvestment Property TaxJoint TenantKeypersoninsuranceLandlord RepairsLandlords Self AssessmentLate vat registrationLBTTLeadgenerationLeadmagnetLeanbusinessmodelLetting Agent DisbursementsLetting Agent RecharresLettings ReliefLimitedcompanyLoaninterestLong Lets TaxLongserviceLTTMainresidencereliefManaged LetsManagement accountingMaritalhomedivorceMarriage allowanceMarriageallowanceMileage paymentMinimumwageMixedusesdltMortgage costsMortgage Interest ReliefNew propertyNewcompanycarfuelratesNewnicrulesNIC 2023 to 2024NIC savingsNicdisregardNicreductionNMWNmwerrorsNon-taxableNudgeletterOptiontotaxvatOverpayment ReliefPaperformPartnershipPartnershipbusinessesParttimePatternofoccupancyPAYEPAYE by Direct DebitPayrollingPenaltypointsPension Payments Tax ReliefPensioncontributionsPensionsPerformance-reviewsPeriodofgracePeriodsofabsencePersonal financePersonalallowancePersonalguaranteesPostcessationreliefPretradingexpensesProfitProfit-and-lossProfitAndLossProperty AllowanceProperty Development CompanyProperty IncorporationProperty Investment CompanyProperty investor accountsProperty investor tax tipsProperty LettingProperty Rental BusinessProperty TradingPropertycompanyRecharges by Estate AgentsRegularpaymentsReimbursedexpensesRent your driveRentalRentaroomResearch & DevolopmentResidence ReliefResidential property gainsResidentialsdltRetail stock controlRetainedprofitsRevenueRoom for rent taxRtiSASalarySDLT changesSection 455 TaxSection455taxSelective Licences LandlordsSelf AssessmentSelf-employednicSelfemployedSeperationServicechargesSettlementslegislationSimplified ExpensesSmallbizSmallbusinessratereliefSoftwareSpring BudgetStaffpartiesStamp dutySuccessJourneyTax Allowance on DrivewaysTax AllowancesTax DeadlinesTax Filing DeadlinesTax Free ChildcareTax free incomeTax on Company VansTax positionTax ReliefTax tips for landlordsTaxbillpaymentsTaxconsequencesTaxincentivesTaxpositionTaxpositionassetsTaxreliefTaxreliefsTaxsesTerminationpaymentsTipsTrade professionalTransfer AssetsTransfer Assets Between SpousesUmbrellacompanyUndisclosedincomeUnpaid RentVAT Bad Debt ReliefVAT DeadlinesVAT DisbursementsVAT PenaltiesVAT registrationVatpenaltiesVatregisteredVatregistrationthresholdWellbeing

Making pension contributions before 6 April 2024

Making pension contributions before 6 April 2024

As the end of the tax year approaches, it is prudent to review your pension contributions for the year and consider whether it is worth making further contributions before 6 April 2024. Remember, any annual allowances brought forward from 2020/21will be lost if not used by this date.

The amount of tax-relieved contributions that can be made in any tax year to a registered pension scheme is limited by both your earnings and your available annual allowances.

Earnings cap

Tax-relieved personal contributions to a registered pension scheme are capped at 100% of earnings for the year or, if higher, £3,600 (gross). This can be limiting for company directors who extract the majority of their profits as dividends, as dividends do not count as earnings for these purposes. However, contributions made by an employer (including those by the director’s personal or family company) are not limited by the earnings cap and can be taxefficient.

Annual allowance

The second limit on tax-relieved pension contributions is the annual allowance. Both individual and employer contributions count towards the allowance.

The allowance is set at £60,000 for 2023/24. However, where both threshold income (broadly income excluding pension contributions) exceeds £200,000 and adjusted net income (broadly income including pension contributions) exceeds £260,000, the allowance is reduced by £1 for every £2 by which adjusted net income exceeds £260,000 until the allowance reaches £10,000.

Where the allowance is not used in full in a tax year, it can be carried forward for three years. However, allowances from an earlier year can only be used where the current year’s annual allowance has been used in full. Allowances not used within this timeframe are lost. If you have made contributions to the level of your annual allowance for 2023/24, further contributions can be made to utilise any unused allowances from 2020/21, 2021/22 and 2022/23. The unused allowances for an earlier year are used before those of a later year.

The annual allowance for 2020/21 to 2022/23 inclusive was set at £40,000; threshold income was £200,000; the adjusted net income abatement threshold was £240,000 and the minimum allowance for the year was £4,000. It is important that the correct figures are used when calculating allowances available from earlier years.

Where a pension has been flexibly accessed by a contributor who has reached age 55, a reduced annual allowance applies to prevent recycling of contributions to benefit from further tax relief. This allowance (the money purchase annual allowance) is set at £10,000 for 2023/24. It was £4,000 for 2020/21 to 2022/23 inclusive.

If tax-relieved contributions are made in excess of the available annual allowance, the excess tax relief not due is clawed back by means of an annual allowance charge.

No lifetime allowance charges

The abolition of the lifetime allowance charge from 6 April 2023 (and the lifetime allowance itself from 6 April 2024) provide an opportunity for those whose tax-relieved pension savings have already reached £1,073,100 to make further contributions without incurring a punitive tax charge. However, where pension savings exceed £1,073,100 when accessed, the tax-free lump sum is capped at £268,275 (being 25% of this figure).

Take advice

In deciding whether to make further pension contributions before the end of the tax year, it is advisable to take financial advice.