If you have run through the calculator and your result was red or amber then you should consider making a change. Here are some potential solutions which could help you avoid a tax charge:
If you have unused allowance from the 3 previous tax years you can exceed the limit in the current tax year.
If your matched contributions take you over the limit, you can choose to pay some or all of your matched contributions to the RBC UK Savings Plan instead. Contributions to the Savings Plan are subject to tax and National Insurance deductions. RBC’s match is 1 : 0.9 so, if you pay 4%, RBC’s match will be 3.6%.
Note: Don’t reduce your GPPP contributions below 1%, or the core contribution from RBC will also fall.
You can pay in £10,000 each year without an Annual Allowance charge.
If you want to check out your Lifetime Allowance Calculator please click below.
Allowance
Allowance
Calculation results are only a guide and are not guaranteed, they should not be relied upon as a recommendation or advice that a particular course of action is suitable.
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ilumiti LLP is authorised and regulated by the Financial Conduct Authority - Number 608554. The Financial Conduct Authority does not regulate tax advice.
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