However, private pensions only claim relief from 20 percent. The additional 20 or 25 pieces must be reclaimed via a tax return. If a 40 percent taxpayer contributed £ 8,000, he would receive a tax credit of £ 2,000. They would also be reimbursed an additional £ 2,000 but only if they submit a return.
PensionBee’s Romi Savova called on the government to introduce a flat rate tax break, claiming it was “long overdue”.
She said: “The Chancellor should get rid of various tax breaks that are incredibly costly and difficult to understand in favor of a system that really rewards everyone for putting money aside for their retirement.”
As an incentive to earn money by age 55
The cost of tax breaks has increased by £ 4.4 billion in two years, rising to £ 41.3 billion for the 2019-20 tax year. This has raised fears that the Chancellor will revise budget policy on October 27th.
Rishi Sunak has reportedly had reforms in mind since last November and has long been viewed as a source of income by the government.