Make the most of pension tax relief by 5 April
Most personal payments you make into your pension get topped up by the government with tax relief. Each tax year, you can make payments across all your pensions up to 100% of your income or the standard allowance of £60,000, whichever is lower.
It’s a tax-efficient way of preparing for the future.
With your Octopus Money Direct pension, it’s easy to make one-off payments, set up and manage regular monthly payments, and track performance using Online Service.
Remember, you can’t normally access your pension before the minimum pension age (currently 55, increasing to age 57 from 2028).
Online Service benefits
With Online Service, you can easily:
- Track your pension performance
- Make one-off debit card payments
- Set up or adjust regular Direct Debit payments
- Combine older pensions to keep track of everything in one place
Be tax savvy
When you make a payment, we collect basic rate (20%) tax relief from HMRC on your behalf, and put it straight into your pension.
If you’re a higher (40%) or additional (45%) rate taxpayer, you can claim extra tax relief through your Self Assessment tax return. You’ll receive the extra relief as a rebate, a reduction in your tax bill, or as a change to your tax code.
Don’t hang about – this tax year ends on 5 April
To make the most of this tax year’s tax relief, you’ll need to contribute to your pension before 5 April.
If you don’t use your full pension allowance in a tax year, you may be able to carry it forward for up to 3 tax years. This will depend on your circumstances and rules may change. If you need advice, speak to a qualified financial advisor.
Remember, the value of investments can go up and down, so you may get back less money than you put in. Tax depends on your individual circumstances and the regulations may change in the future.
Make the most of this tax year’s pension allowances
Even small steps now could make a difference to your future.
Questions and answers
What is Online Service?
Online Service lets you manage your investments securely online, track performance, make payments, and view documents whenever you need them.
How do I register?
For full step-by-step instructions, see how to register here. You’ll need your VIR number, which you’ll find on any statements or letters we sent in 2023 or earlier.
Then, we’ll send you a PIN by post, which you can use to complete your registration.
Can I still manage my pension by phone?
Yes, if you opened your account before 1 January 2023, you can call or write to us if you wish. If you send us a cheque, remember to make it payable to Octopus Money Direct.
However, it’s quicker and safer to use Online Service – visit the register page for info.
How much can I pay into my pension this year?
Most people can receive tax relief on contributions up to 100% of their earnings. There’s an annual allowance of your annual income or £60,000, whichever is lower. Remember the allowance applies across all pensions you may have each tax year, including employer schemes.
If you contribute above your annual allowance, you may be liable to pension savings tax charges. More info (including different limits for high-earners) is available at gov.uk.
What if I didn't use my full allowance in previous years?
You may be able to carry forward unused allowance from the past three tax years, depending on earnings and eligibility. More info is available at gov.uk.
Speak to a qualified financial adviser if you need advice. Octopus Money can offer financial and wealth planning advice, go to octopusmoneydirect.com/planning (additional charges may apply).
Do I get tax relief if I don’t earn enough to pay income tax?
Yes, you’ll still receive tax relief on the first £2,880 you contribute each year.
Can I combine other pensions?
Yes, if you’ve had multiple workplace pensions over your career, you can consolidate them to keep track and stay organised. Learn more here.
Speak to a qualified financial adviser if you need advice. Octopus Money can offer financial and wealth planning advice, go to octopusmoneydirect.com/planning (additional charges may apply).
Can I make a payment over the phone?
If you want to make a one-off payment or make changes to your account over the phone, give our team a call on 03455 28 88 88.
We’re here to help Monday-Friday 8am-9pm, and Saturday 9am-6pm.