Linden Accounting Services Ltd

Income tax bands

Payment Deadlines (HMRC)

Stamp Duty Land Tax (SDLT)

Corporate Tax Rates

Tax-free Childcare

Main exempt benefits

Personal Pensions and Tax Relief – Are You Making the Most of It?

Pension contributions remain one of the most tax-efficient ways to save for retirement. Contributions within the annual allowance (currently £60,000) usually receive tax relief at your marginal rate, while your pension fund grows tax-free and part of it can be taken as a tax-free lump sum at retirement.

For individuals with adjusted income above £260,000, the annual allowance may be tapered, potentially reducing it to as little as £10,000.

If you have not used your full allowance in previous years, you may be able to carry it forward for up to three tax years, allowing you to make larger contributions while still receiving tax relief.

A few useful planning tips:
• Consider making pension contributions before the tax year end to maximise tax relief.
• Contributions can be especially tax-efficient if your income is between £100,000 and £125,140.
• You can also contribute up to £2,880 for a spouse or child, which HMRC increases to £3,600 with basic rate relief.

Although the Lifetime Allowance has been abolished, the tax-free lump sum limit generally remains £268,275.

Thinking about pension or year-end tax planning?
We are happy to help you review your options.

📞 0161 485 3027
📧 [email protected]

Linden Accounting Services Ltd

Will You Get the Full UK State Pension?

If you are thinking about retirement, it is worth checking how much State Pension you are likely to receive. You can do this easily through your personal tax account on gov.uk, where you can view your National Insurance record and see if there are any gaps.

To receive the full State Pension, you usually need 35 qualifying years of National Insurance contributions or credits. You need at least 10 years to receive any pension at all.

If there are gaps in your record, you may be able to fill them by paying voluntary contributions. In many cases this can be done for up to six previous tax years, which could increase your future pension.

Self-employed individuals may also be able to pay voluntary Class 2 contributions, which are usually cheaper than Class 3.

It is also worth checking whether you received National Insurance credits for periods when you claimed certain benefits, received Child Benefit, or were a foster carer.

A quick check now could help increase your income in retirement. If you would like help reviewing your National Insurance record, feel free to get in touch. Tel. 01614853027

🎁 Trivial Benefits in Kind – A Simple, Tax-Free Way to Say Thank You
No P11D. No HMRC reporting. Just a thoughtful gesture that stays simple.
✅ The Four Conditions You Must Meet
To qualify as a trivial benefit, all four of these conditions must be satisfied:
1. Cost must not exceed £50 per employee (including VAT)
If provided to a group and you cannot work out individual cost, the average per person must be £50 or less.
2. It cannot be cash or a cash voucher
Gift vouchers are fine, as long as they cannot be exchanged for cash.
3. It must not be contractual
The employee cannot be entitled to it under their employment contract.
4. It must not be a reward for work or performance
So no linking it to hitting targets or bonuses.
🎉 When Can You Give a Trivial Benefit?
These are often given for:
• Christmas
• Easter
• Diwali and other religious festivals
• Different New Year celebrations
• Engagements, weddings or birth of a child
• Passing a driving test
• Completing the London Marathon
• Work anniversaries
• Or simply as a small gesture of goodwill
It’s about marking occasions, not rewarding performance.
🎁 What Can Count as a Trivial Benefit: see next post
As long as the £50 rule and other conditions are met, these can qualify.
⚠️ Important for Close Companies
If your company is a close company and the benefit is provided to a director, office holder, or a member of their family or household, the exemption is capped at:
£300 per individual per tax year
After that, normal benefit in kind rules apply.
Trivial benefits are a brilliant way to show appreciation without creating a tax headache. But the rules do need to be followed carefully, especially for director-shareholders.

If you’d like support or advice, get in touch and we’ll help you. Tel. 01614853027