How do Stakeholder Pensions impact on me as someone who is self-employed?

The introduction of stakeholder pensions in April 2001 was accompanied by a major simplification to the process of obtaining tax relief by the self-employed.

Previously, contributions that were paid by the self-employed into a personal pension had to be paid gross with the tax relief on the contributions claimed from the Inland Revenue through your tax return.

Since April 2001 contributions into both personal pensions and Stakeholder pensions are paid net of basic rate tax and the corresponding tax credit is paid directly into the stakeholder pension by the Inland Revenue.

Further details can be obtained by e-mail bectu@bbgroup.co.uk or by ringing 0845 634 2010 (local rate call in the UK).