Pension Contribution Limits & Tapered Allowance Explained for UK Taxpayers | MTA

Understanding pension contribution limits and the tapered annual allowance is essential for UK taxpayers, particularly higher earners and company directors. In this video, MTA explains how UK pension contribution limits work, how the tapered allowance applies, and why mistakes can lead to unexpected tax charges in 2025-26.

MTA (My Tax Accountant) breaks down the standard annual allowance, how adjusted income and threshold income are calculated, and when the tapered allowance reduces how much you can contribute tax-efficiently. Many UK taxpayers remain unaware that bonuses, dividends, rental income, or pension contributions themselves can push them into tapered allowance territory.

This video also explains how pension contribution limits interact with inheritance tax and estate planning. MTA highlights how pension pots often play a key role in keeping estates within the Excepted Estates rules in 2025-26, and how excess contributions or unexpected tax charges can undermine long-term planning if not managed correctly.

MTA explains common mistakes HMRC frequently challenges, including incorrect carry-forward calculations, misunderstanding employer contributions, and failure to recognise when tapering applies. These errors can trigger HMRC enquiries, penalties, and retrospective tax assessments.

UK taxpayers searching for clear guidance on pension contributions, tapered allowance rules, and HMRC compliance in 2025-26 will find this video especially valuable. MTA focuses on real UK scenarios to explain who is affected, how the rules apply in practice, and what steps can be taken to remain compliant while maximising pension efficiency.

This video is tailored exclusively for UK taxpayers who want clarity on pension saving limits, inheritance tax exposure, and protecting long-term wealth under current HMRC rules.

Read more expert UK tax guidance from MTA (My Tax Accountant):
https://www.mytaxaccountant.co.uk/

For personalised advice on pension planning, annual allowance charges, or inheritance tax strategy, contact MTA today.
Phone: 0208 5708531
Email: [email protected]

Disclaimer
The information provided in this video is for general informational purposes only and does not constitute tax, financial, or legal advice. While MTA (My Tax Accountant) endeavours to reflect UK pension and tax rules applicable in 2025-26, legislation and HMRC guidance may change and individual circumstances vary. MTA accepts no liability for actions taken based on this content. Always seek personalised advice from a qualified UK tax professional before making pension contribution or estate planning decisions.

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