Higher Earners Pay £225m Unnecessary Tax

FUTURE PROOF: One in 10 higher rate tax payers do not make personal contributions into a pension, missing out on tax relief of £225 million a year - or £2,500 per person

Emma Wall 10 June, 2014 | 3:24PM
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Higher rate earners annually waste more than £225 million in unnecessary tax payments; the equivalent of £2,500 a year each.

The average higher rate tax payer earns £63,000 a year according to a report from Prudential, but despite their career success one in 10 do not put money away for retirement.

Not only is this failing to secure themselves a comfortable retirement, but it is also neglecting to take advantage of £225 million worth of tax relief from HMRC.

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Emma Wall  is former Senior International Editor for Morningstar

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