thanks.
2007-05-03 23:10:14 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United Kingdom
No, but there is a cash flow disadvantage if you are a higher rate taxpayer as you are paying it out of taxed income. You get basic rate tax relief at source but you have to claim the difference between 22% and 40% on your tax return which could be nearly two years later.
Also, most employer schemes will match at least some of the contribution that you make to their company scheme, but they will not do this if you invest in an independent scheme. This could be a significant amount and you shouldn't give it up lightly.
BTW, Gene (the person above me) is talking about the US and not the UK.
2007-05-04 11:22:13 · answer #1 · answered by Snakey B 4 · 0⤊ 0⤋
No.
However, it is usually beneficial to take out a company pension as the company usually pays into the pension as well as you, and you won't get that added contribution in your salary if you don't take up the pension, so you would be losing out on contributions going into the pension.
2007-05-05 12:45:43 · answer #2 · answered by Agony Aunt in training 3 · 1⤊ 0⤋
no matter what you do to put money away you are saving tax dollars both ways. either way you lower your net salary by what you invest in retirement but it must be an IRA or other retirement account
2007-05-04 09:18:38 · answer #3 · answered by GENE M 2 · 0⤊ 1⤋
No but take some legal advice first mate.
2007-05-04 06:18:09 · answer #4 · answered by scorpiotoo2000 4 · 1⤊ 0⤋
I think it is obligatory in UK
2007-05-04 06:17:08 · answer #5 · answered by ELBASHA 3 · 0⤊ 0⤋