How to minimise your tax liability while maximising your pension

Choosing to contribute to a pension is a very important step in your life. It’s a tax efficient way to help ensure you are financially secure in retirement. The advantage of a pension contribution before the tax deadline is that the contribution can be set against your income tax bill for 2019.

If you pay a pension contribution in respect of 2019 earnings, in 2020, then your preliminary tax will be calculated as 100% of your final liability for 2019. The deadline for making a return and payment via post is 31 October or 10 December for electronic returns.