Yes you can believe your eyes HMRC are giving you money!!

Yes you can believe your eyes HMRC are giving you money!! What?? Can this be true, HMRC are giving rather than taking?

We would all like more money...... but how is this achieved. A large number of the questions I am asked are, 'How do I increase my wealth?'  'How can I make more money?'  'Where can I place my spare income?'  Now these are mainly from my male clients and those who have large surplus income. 

I have also met people who are in the opposite position and are unable to increase their wealth due to a lack of spare money to enable them.  My starting point here is always expenditure, looking at firstly what is going out before looking at the income that is coming in.  There are always ways to save but it comes with trade offs , what sacrifices are to be made in order to be able to save.  Starting off small can help, saving £10.00 per month and then increasing it gradually as you have been able to make adjustments in order to save this amount. 

The great temptation though when we start to save is to dip into this pot for small things, repairs on the car, or the deposit for a holiday or that takeaway on a Friday night after a hard week at work.  There is nothing wrong with any of these, however they are separate items to save for.   The saving I am discussing is the saving for YOUR future, for you to be given choices in life, for you to decide how YOU want your future to be. How long you want to work for, how much money you will have in your purse at any given time and for you to not be dependent on someone else. 

So how is this done........???? Well guess what with the help of HMRC.......No......Never......Yes.

Pensions are a marvellous way to save, but in the past have been given very poor coverage.  They are seen for a large amount of people, a waste of money, where money would be better saved elsewhere.  What is forgotten though is that HMRC will make a contribution to a pension, which they will not do for anything else.  So the second you put money into a pension, it increases by 20%, 40% or 45%, depending on your tax position. 

So the next time you look at your payslip and feel your blood pressure increasing with the amount of tax you have paid, give a thought to your pension and chuckle that you have had some of that back. For those that have no pension, perhaps think about why a pension may be a good idea, you will get to see a return on some of your money which you have given away in your payslip.