How 75,000 people can get a 20pc pension boost by waiting just two weeks
Changes to income tax take effect in two weeks – and with some smart use of pension pots you can save thousands of pounds in tax.
The trick is to delay usual payments – using the flexibilities afforded by the pension freedom reforms – until 6 April.
Both the personal allowance (the amount you can earn before paying any tax) and the level that higher-rate (40pc) tax kicks in are increasing for the 2019-20 tax year.
That means earnings under £12,500 will be entirely free of income tax, while anyone earning £50,000 or less will only pay 20p in the pound. There are as many as 75,000 pensioners who could receive an almost immediate 20pc uplift by delaying payments, according to analysis of Office…
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