Investment Insights
Investments do rise and do fall in value and we strongly advise that professional advice is taken before investing your money
In most cases, being self-employed gives you the freedom to make your own choices in terms of who you work for and when, along with the rate for your labour, which is understandably a very powerful attraction to the self-motivated and hard-working entrepreneurial population.
So… Why is it that, according to the Office of National Statistics (ONS), only 20% of self-employed individuals were contributing to a pension between 2018 and 2020? Are you going to work forever with perfect health, and still enjoy your dream retirement? With higher rates of tax on the horizon (and the horizon is closer than you think) pension contributions should be a priority! Why, you may ask? Well, the numbers speak for themselves... Let's look at an example, if you are self-employed with total taxable profits of £150k in 2023/24 making a pension contribution of £50k, you would receive tax relief at 45% on £24,860 and 60% on £25,140 (40% tax relief plus a further 20% by reinstating your personal allowance). You could be saving tax of £26,271 and then you would have a pot of £50k as opposed to only £23,729 in the bank… Building up long term wealth is about making wins on a regular basis. Is the above you? If so, we need to speak... 3/3/23 |
AuthorSteven is a Fellow of the Personal Finance Society, whom is passionate about investing and getting the most from your money. Archives
March 2024
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Steven Mufti & Associates Ltd is authorised and regulated by the Financial Conduct Authority.
Financial Services Register Number 607613. Registered in England & Wales, Company number 8664240. Registered Office address: 27 Armitage Court, Ascot, Berkshire, SL5 9TA. Telephone: 01344 623811 Email: advice@smawm.co.uk The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK. The FCA does not regulate taxation advice. The value of your investments may fall as well as rise. Financial Conduct Authority register: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000NMlk7AAD |
3/3/2023
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