Tax year end

Tax year end

We've pulled together all of our pension tax year end information in one convenient location.

Need advice?

If you're not sure about your options at tax year end, you should speak to an independent financial advisor. They can give you personalised advice and recommendations to match your individual needs and circumstances.

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Tax year end is an important time of year for planning and managing your finances, especially when it comes to your pension. It's the last opportunity to make use of your annual allowances before the start of the new tax year.

When does the tax year end?

The UK tax year doesn't follow the normal calendar year from January to December. Instead, it starts on the 6th of April and runs until the 5th of April the following year.

  • The 2019-20 tax year began on Saturday 6 April 2019 and runs until Sunday 5 April 2020

Why is it important?

You have the opportunity to use your pension allowances (where you can afford to) before the tax year ends and make the most of tax efficiency.

If you can afford to make an additional contribution and you haven't used up all your pensions allowance, you may be able to make a further contribution before the tax year end. If you're taking an income and haven't used up all your income allowance for the current tax year, you may be able to take more income before it ends. 

You might be able to do both but you need to be aware of the allowances set by HMRC every year.

Before you take any actions that affect your pension at tax year end, you should speak to a financial advisor.

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Important dates and deadlines

Tax year end is a busy time of year for financial professionals. You need to be aware of key dates and deadlines so that you can send paperwork and cheques in plenty of time. If you plan to get independent financial advice about your options, you'll need to allow time for this too.

Key dates for single contributions

  • We must receive completed application forms, supporting documents and cheques for single pension contributions by 6pm on Friday 5 April 2019.
  • If you wish to make a single contribution by BACS payment, this must be cleared in our account by 6pm on Friday 5 April 2019.

Key dates for income withdrawal

  • We must receive the application form and any supporting documentation by 6pm on Thursday 28 March 2019 to make an income payment into your account by close of business on Friday 5 April 2019.

Tax year end Frequently Asked Questions

There's lots to think about at tax year end so we've pulled together the answers to the most frequently asked questions we get at this time of year.

Making payments FAQ

We would strongly recommend you speak to your financial adviser. They will help you understand if this is an option that's available for the pension plan you have with Royal London and if it is the right thing for you to do.

Please remember there is a cut off date for receiving single lump sum payments and applications forms, so it's important you make contact with your financial adviser at the earliest opportunity to avoid missing the deadline for the tax year 2018/19.

If you have a personal pension policy with Royal London (taken out after 24 November 2014) or Scottish Life

If you would like to make a single lump sum payment into your pension, contact our Customer Service team on 0345 6030154. They are available to help you Monday to Friday, 8am to 6pm (excluding Bank Holidays).

If you have a group pension policy with Royal London (taken out after 24 November 2014) or Scottish Life

If you are thinking of going ahead without seeking financial advice, please contact our Customer Service team.  They are available to help you Monday to Thursday, 8am to 6pm and 8am-5pm on a Friday (excluding Bank Holidays). Your Welcome Pack includes contact details for the team that deals with your scheme.

If you have a pension policy with another company bought, owned or rebranded by Royal London

If your pension policy is with a company that was bought, owned or rebranded by Royal London, please visit our Contact page to find the contact details for your policy. Our customer service team will help you understand if this is an option available to you and what you need to do.

We would strongly recommend you consider speaking to a financial adviser before making a decision. They will help you understand if this is an option that's available for the pension plan you have with Royal London and if it is the right thing for you to do. Remember that if you don't have a financial adviser, you are responsible for making your own tax calculations.

If you have a personal pension with Royal London or Scottish Life

If you are thinking of going ahead without seeking financial advice contact our Customer Service team on 0345 6030154. They are available to help you Monday to Friday, 8am to 6pm (excluding Bank Holidays).

If you have a group pension policy with Royal London (taken out after 24 November 2014) or Scottish Life

If you are thinking of going ahead without seeking financial advice contact our Customer Service team. They are available to help you Monday to Thursday, 8am to 6pm and 8am-5pm on a Friday (excluding Bank Holidays). Your Welcome Pack includes contact details for the team that deals with your scheme.

Please remember there is a cut off date for receiving single lump sum payments and application forms, so it's important you make contact at the earliest opportunity to avoid missing the deadline for the tax year 2018.

If you have a pension policy with another company bought, owned or rebranded by Royal London

If your pension policy is with a company that was bought, owned or rebranded by Royal London, please visit our Contact page to find the contact details for your policy. Our customer service team will help you understand if this is an option available to you and what you need to do.

Completed application forms and payments must be received by 6pm on Friday 5 April 2019.

If you have a personal pension policy with Royal London or Scottish Life

There is no charge for Royal London to apply a single lump sum payment to your pension.

However, plan charges will apply to the single lump sum payment and will be higher if it is completed without involvement from your financial adviser.

If you have a group pension policy wuth Royal London or Scottish Life

There is no charge for Royal London to apply a single lump sum payment to your pension. However, plan charges will apply to the single lumps sum payment.

If you have a pension policy with another company bought, owned or rebranded by Royal London

A one-off fee may be applied depending on the type of plan you have. Our Customer Service team will be able to tell you if a fee will apply.

If you have a group or personal pension policy with Royal London or Scottish Life

The lump sum payment will be applied to your plan on the date we receive all of the required information and documentation from you or your adviser.

This date may differ from the date we received your payment.

If you have a pension policy with another company bought, owned or rebranded by Royal London

The payment will be applied to your plan on the date of your payment.

Taking income or withdrawals FAQ

We would strongly recommend you speak to a financial adviser. They will help you understand if this is the right thing for you to do.

Please remember there is a cut off date for receiving income withdrawal requests, so it's important you make contact with your financial adviser at the earliest opportunity to avoid missing the deadline for the tax year 2018/19.

We would strongly recommend you consider speaking to a financial adviser before making a decision.

If you are thinking of going ahead without seeking financial advice contact our Customer Service team on 0345 8508953. They are available to help you Monday to Friday, 8am to 6pm (excluding Bank Holidays).

Please remember there is a cut off date for receiving income withdrawal requests, so it's important you make contact at the earliest opportunity to avoid missing the deadline for the tax year 2018/19.

For an income payment to be paid into your account by close of business on Friday 5th April 2019, the application form and any supporting documentation required must be received by 6pm on Thursday 28th March 2019. Requests received after this date may not be paid in the 2018/19 tax year.

There is no charge for withdrawing income from your income release plan.

There are limits on the amount you can invest in pension plans and on the maximum value of retirement savings that you can accumulate without being subject to a tax charge. These limits are known as the annual allowance and the lifetime allowance.

If you want to make contributions to your plan after you’ve taken all or some of your retirement savings you may be limited to what you can contribute and receive tax relief on. This is known as the money purchase annual allowance (MPAA). Please note that this is considerably lower than the annual allowance and relates to any pension plan you may have, not just this one.

If you want to find out more, speak to your financial adviser or visit our Pensions section.

You don’t receive tax relief on payments you transfer into your plan from another pension plan.

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Understanding your allowances

Every year the government gives you tax relief on your pension contributions and income up to a certain level. These are called your personal allowances. Before the end of the tax year, you may wish to check whether you have made full use of your tax-free allowances for the year.

Pensions - Contributions

Your annual allowance is the maximum amount that can be paid into your private pension each year and still receive tax relief on your contributions. For most people, their allowance is 100% of their earnings in a year, up to a maximum of £40,000. For more information on annual allowances, visit the Pensions Advisory Service website.

Pensions - Income

You can receive a certain amount of income each year without needing to pay income tax. This is your Personal Allowance and includes income drawn down from your pension. For the tax year 2018-2019, the standard Personal Allowance is £11,850. Any money you receive as tax-free cash from your pension doesn't count towards your Personal Allowance. 

For more information about your pensions allowance, take a look at our guide to tax free allowances. If you would like to calculate your annual allowance and check if you have to pay tax on your pension savings, use HMRC's annual allowance calculator.

Financial advice

Before deciding what to do at tax year end, it's a good idea to seek independent financial advice. A financial adviser will be able to give you a personal view of how to plan your finances and make the most of your tax-free allowances.

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