Pension Contribution Planning UK —
Up to 45% Relief on Every Pound
Expert pension tax planning — annual allowance optimisation, carry-forward calculation, tapered allowance for high earners, NHS pension annual allowance charges, company pension contribution strategy and Scheme Pays elections. ACCA qualified.
Pension Tax Planning — The Most Tax-Efficient Investment Available
UK pension contributions are one of the most tax-efficient uses of money available. Every pound contributed generates income tax relief at your marginal rate — 20%, 40% or 45%. Company contributions are Corporation Tax deductible and attract no NIC. No other mainstream investment offers this combination of immediate tax relief, tax-free growth and a 25% tax-free lump sum on access.
The annual allowance is £60,000 in 2024/25 — covering all pension contributions (personal and employer) across all schemes. Unused allowance from the three previous tax years can be carried forward — potentially allowing a single contribution of up to £180,000 for someone who has not previously maximised their allowance.
The tapered annual allowance applies to individuals with threshold income above £200,000 AND adjusted income above £260,000 — reducing the £60,000 allowance by £1 for every £2 above £260,000, to a minimum of £10,000. For NHS consultants and other high earners, pension input in the NHS scheme can create annual allowance charges — particularly in years of significant pensionable pay increases.
For limited company directors, employer pension contributions are the most tax-efficient extraction method — fully deductible for Corporation Tax (19-25% saving) with no employer or employee NIC. A £10,000 employer pension contribution costs just £7,500-£8,100 net of CT savings — significantly cheaper than equivalent salary.
✅ What’s Included
- ✓ Annual allowance review
- ✓ Carry-forward calculation (3 prior years)
- ✓ Tapered allowance assessment
- ✓ NHS pension annual allowance charge
- ✓ Scheme Pays election advice
- ✓ Company employer contribution planning
- ✓ Personal contribution optimisation
- ✓ Higher rate relief claim (Self Assessment)
- ✓ Pension and IHT interaction planning
- ✓ QROPS for international clients
- ✓ Drawdown and crystallisation planning
- ✓ Annual pension tax report
Our Process — Step by Step
Which Businesses Need This Service?
Higher & Additional Rate Taxpayers
Every pound contributed to a pension by a higher rate taxpayer generates 40% immediate tax relief. For additional rate payers, 45%. No other mainstream investment matches this.
NHS Clinicians & Public Sector Professionals
NHS pension scheme members often accumulate pension input that exceeds their annual allowance in high-pay years — creating annual allowance charges. We calculate charges and advise on Scheme Pays elections.
Limited Company Directors
Company pension contributions are the most tax-efficient director extraction method — CT deductible with no NIC. We calculate the optimal employer contribution for every director annually.
High Earners with Income £100k-£125k
Directors and employees in this band face a 60% effective marginal rate. Company pension contributions reduce adjusted net income — potentially restoring the personal allowance and converting 60% relief into 45%.
4 Costly Mistakes — And How Britvex Prevents Them
Basic rate relief is added at source by the pension provider. Higher rate and additional rate taxpayers must claim the additional relief via Self Assessment — many miss this, leaving 20-25% of the contribution value unclaimed annually.
Many pension savers are unaware they can carry forward unused annual allowance from the three previous tax years. For someone who hasn’t contributed maximum for three years, this can allow a single large contribution generating substantial immediate tax relief.
High earners (adjusted income above £260,000) face a reduced annual allowance — to a minimum of £10,000. Excess contributions above the tapered allowance trigger an annual allowance charge that effectively cancels the tax relief. We calculate the tapered allowance for every affected client.
Annual allowance is a use-it-or-lose-it relief — it cannot be carried forward beyond the 3-year window. Waiting until year-end to review pension contributions means missing opportunities in years where carry-forward has already expired. We review pension position quarterly.
Pension Contribution Planning — Common Questions
The annual allowance is £60,000 in 2024/25 covering all contributions (personal and employer). You can also carry forward unused allowance from the three previous tax years — potentially contributing up to £180,000 in a single year. Contributions above the annual allowance (after carry-forward) trigger an annual allowance charge recovering the excess relief.
Yes — basic rate relief (20%) is added automatically by the pension provider. Higher rate taxpayers must claim the additional 20% (and additional rate taxpayers the additional 25%) via Self Assessment. Many higher rate taxpayers miss this — leaving significant relief unclaimed every year. We claim higher rate pension relief for every eligible client.
The taper applies if you have threshold income (net income before pension contributions) above £200,000 AND adjusted income (including employer contributions) above £260,000. For every £2 of adjusted income above £260,000, the annual allowance reduces by £1 — to a minimum of £10,000. The taper can sometimes be avoided by changing the split between personal and employer contributions.
NHS pension scheme members can accumulate pension input that exceeds their annual allowance — particularly in years of significant pay increases. When accumulated pension input exceeds the allowance (after carry-forward), an annual allowance charge applies at the member’s marginal rate. The Scheme Pays election allows the charge to be paid by the NHS scheme — in exchange for a reduced pension. We calculate NHS annual allowance charges and advise on Scheme Pays for all affected clinicians.
The pension lifetime allowance was abolished from 6 April 2024. However, transitional protections (Enhanced Protection, Fixed Protection 2012/2014/2016, Individual Protection 2014/2016) still affect the maximum lump sum available to those who held them. We advise on the post-LTA landscape and ensure any transitional protections are correctly documented and preserved.
Fixed Fees — No Surprises
All fees fixed and agreed upfront. Book a free consultation for your exact quote.
Complete Your Tax Package
Pension Planning — Use Every Pound of Allowance
Book a free consultation. We’ll calculate your available allowance, carry-forward and optimal contribution — and claim every pound of higher rate relief due to you.