Pensions Archives - Potts & Co

Dec 13 2025

Salary Sacrifice Pensions

By admin HMRC, Pensions, Potts & Co Accountancy & Business Advice News

Many employers offer salary sacrifice schemes enabling employees to give up some of their salary in exchange for an equivalent employer's contribution into their pension If you sacrifice some of your salary to your pension, the amount you give up is not counted as taxable income so you do not…

Sep 06 2023

Deadline Extended For Voluntary NIC Payments

By admin HMRC, National Insurance, Pensions, Potts & Co Accountancy & Business Advice News

HMRC has given taxpayers an extra two years to plug any gaps in their NIC record from April 2006. The deadline for making voluntary contributions has been extended from 5 April 2023, as previously reported, until 5 April 2025. The deadline was first extended to 31 July 2023 and HMRC…

Aug 31 2023

Pensions Update – Income Tax For Beneficiaries

By admin HMRC, Lifetime Allowance (LTA), Pensions, Potts & Co Accountancy & Business Advice News

In Spring Budget 2023 the Chancellor announced a welcome change to the tax treatment of pensions - the scrapping of the Lifetime Allowance (LTA). The LTA stood at £1,073,100 when the process began on 5 April 2023 with the removal of the LTA charge. This means that withdrawals can now…

Jun 08 2023

Student Loans, Property & Pensions

By admin HMRC, National Insurance, PAYE, Pensions, Potts & Co Accountancy & Business Advice News, Property, Student Loan Repayments (SLR)

Student loan repayments (SLR) are normally deducted under PAYE from employment income so many people incorrectly assume that SLRs are not due on other 'unearned' income such as rent or pensions. SLR will in fact be payable where the unearned income exceeds £2,000 per year and the taxpayer is required…

Jun 05 2023

What State Pension Will You Receive?

By admin HMRC, National Insurance, Pensions, Potts & Co Accountancy & Business Advice News, State Pension

The amount of your state pension is largely determined by how many years of NIC you have completed during your working life. You can check your NIC record in your online personal tax account (www.gov.uk/ personal-tax-account). You normally need 35 full years of NIC to receive the maximum state pension…

Jun 04 2023

Getting Ready To Retire

By admin HMRC, Money Purchase Annual Allowance (MPAA), Pensions, Potts & Co Accountancy & Business Advice News, Retirement

The changes to the pension rules announced in the Spring Budget were designed to dissuade higher earners from retiring early to avoid pension charges on high contributions but the new rules could have the opposite effect. Individuals can now contribute up to £60,000 per year into a pension scheme and…

Mar 27 2023

Pension Savings Lifetime Cap Removed

By admin Budget Update, HMRC, Pensions, Potts & Co Accountancy & Business Advice News

The pensions lifetime allowance effectively caps the amount that can accumulate in a person's pension fund and be extracted with favourable tax treatment. This covers all contributions paid in and any organic growth in the fund. Where the lifetime allowance (currently £1,073,100) is exceeded the pensioner must pay a lifetime…

Mar 26 2023

Pension Allowances Increased

By admin Budget Update, HMRC, Pensions, Potts & Co Accountancy & Business Advice News

The Chancellor announced the relaxation of three different pension allowances to encourage older taxpayers to remain an active part of the workforce or to return to employment if they have retired early. The pensions annual allowance provides a cap on the total contributions a taxpayer and their employer can pay…

Mar 07 2023

Mind The NIC Gap

By admin HMRC, National Insurance, Pensions, Potts & Co Accountancy & Business Advice News

Do you know whether your national insurance contributions (NIC) record is complete and correct? You can check the NIC record over your entire working life on your online personal tax account (www.gov.uk/personal-tax-account). This will also provide an estimate of the state retirement pension you should expect to receive when you…

Mar 22 2020

Easing the Pension Charges

By admin HMRC, Income Tax, Pensions

Doctors have been retiring early and turning down extra shifts because their higher earnings generate pension contributions in excess of the permitted level of their annual allowance, leading to a penal tax charge. This charge can apply to any high-earning taxpayer but members of final salary pension schemes are particularly…

Pensions