About tax planning

Sometimes there’s no avoiding paying tax. But paying more than you need to should always be avoided. Make sure you use the various reliefs and allowances available to you – and make the most of your retirement savings with tax efficient planning.

Higher rate taxpayers need to reclaim higher rate tax relief on their pension contributions through their annual tax return. Surprisingly, some people fail to do this and end up paying more tax than they need to.

Our tax planning service makes sure you claim this relief.

Once you retire, tax planning doesn’t stop – and it isn’t necessarily more straightforward.

If your retirement income comes from various sources – for example the state pension, your investments and even a company pension scheme – working out how much tax you need to pay can be complex.

Have you disposed of any assets? This could create a capital gains tax liability. Your personal allowances are higher when you’re older. Are you claiming yours?

Pensions are generally regarded as the most tax efficient retirement savings plans.

Pension plans give you income tax relief on your contributions at the highest rate of tax you pay. Getting this higher rate relief isn’t automatic. You have to claim it. If you fail to claim it, you could pay more tax than you need to.

Here’s how it works:

• You make a pension contribution to your pension company, they reclaim an amount equal to 20% (the basic rate of tax) of your contribution from HM Revenue & Customs (HMRC)
• So if you pay £80 into your pension, your pension company claims £20, making your total contribution £100
• If you pay higher rate tax, you need to reclaim a further 20% – the difference between basic and higher rate tax – using your tax return. If you don’t do this, you won’t benefit from this tax relief

The RBS Personal Tax Service makes sure you don’t miss out on all the tax reliefs you’re entitled to, and more. Discover how it can work for you.

• More on Personal Tax Service

Want to get the most out of your tax reliefs and allowances?

• Start a pension - you’ll enjoy tax relief on your contributions, your fund will grow tax-efficiently and you can take part of your fund as tax free cash
• Use your ISA allowance - save up to £10,200 tax-efficiently
• Offshore bonds - offshore bonds grow tax-free, but you have to pay tax when you cash them in
• Your tax status - does your spouse or civil partner pay less tax than you, or no tax at all? If you transfer assets to them, you could save tax. If you do transfer assets, you would give up ownership of them.