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#sippor

64 posts

@Diamondsofgd soirée et cours de folie merci Sippora ❤️ #pourim #soiree #copines #pourtoi
Here’s how I would legally avoid taxes as a self-employed person on an £80,000 a year income. I’m a qualified financial adviser with over 12 years of experience in wealth management. As a self-employed person, one of the most powerful tools you have is a Self-Invested Personal Pension (SIPP). Unlike employees, you don’t get employer contributions—but you do still get tax relief. If you contribute £8,400 a year into a pension, HMRC adds basic rate tax relief—in this case, £2,800. Then, through your Self Assessment tax return, you can claim an additional higher-rate relief, which adds another £2,800 in tax relief. So effectively, you’re getting £14,000 into your pension—but it only costs you £8,400 net, after tax relief is accounted for. Do this consistently over 20 years, and with 8% average growth, your pension could be worth over £640,000—with over £110,000 in tax relief alone. A few important notes: * You need to have enough profit to make pension contributions in the first place—so it’s essential your business is set up properly, and you’re tracking your allowable expenses to avoid overpaying tax. * Your pension savings are locked until at least age 55 (rising to 57 by 2028). This isn’t much of a drawback if you’re planning the funds for retirement, but you need to keep your short-term cash needs separate. * Pension investments can go up or down in value. Use diversified, low-cost funds to help reduce the risk and aim for long-term returns. This strategy isn’t just about saving tax—it’s about building a retirement that doesn’t rely on selling your business or working forever. The earlier you start, the more powerful the compounding becomes. If you’re self-employed and not using a pension, you could be leaving thousands on the table each year.
Replying to @tess.montgomery you can open a SIPP (or any form of private pension) and still get tax relief on your contributions. You could also consider a S&S ISA instead for easier access. The sooner you start the better. #pension #pensions #retirementplanning #personalfinance #investing