SIPPs and tax relief.

[DimPrawn]

Higher rate tax relief has already been removed for anyone earning over £130K.

http://www.moneymarketing.co.uk/pens...003655.article

I'm guessing the next budget however, being a Labour pre-election one won't raise taxes much, infact probably a bumper giveaway of cash to proles.

Come the next budget mind and I can see all tax relief removed from everything when Labour are safely back in.

[Fred Bloggs]

You aren't really paying 100% of your salary. If your salary is say 10K and that is paid out as a wage with NI deducted then the 'unofficial rule' is you can make a direct gross payment of 10K from your Ltd into a SIPP and no questions will be asked.

I would make much bigger payments if I knew I'd get away with it, infact I'd pay the whole lot into a SIPP and pay no tax or NI but I think this would get the taxman excited.

Within the next 8 years (I'm 52) that is EXACTLY what I plan to do for the 4 or 5 years before I finally retire.

[Fred Bloggs]

HL are making gloomy noises about the prospects of ending 40% relief on pension contributions. I don't care, my Ltd Co makes the payments, but I guess they'll be next under the cosh when Mr Broon gets another term in number 10.