Contributions and tax
The best way to make sure you get the most out of your Lifestyle Account is to make regular contributions. It means you'll get the benefit of a contribution from the company, and help from the government in the form of tax relief.
For example, if you're a basic taxpayer, for every £25 a month that is paid into your Lifestyle Account, your take-home pay would only reduce by £20. This is based on the basic rate of tax for the 2022/2023 tax year.
When you're thinking of increasing your contribution, you should bear in mind that there is a maximum amount that can be paid into the Plan without incurring a tax charge. This is called the annual allowance.
These allowances can change with each new tax year, depending on what the government sets out. Our Tax Year and Allowances Sheet will keep you up to date on what these allowances are, and how they could affect you.