"The sensible option is to register for child benefit but opt to not receive it. So you don’t have to pay the tax charge but still accumulate NI credits," said Higham.
The charge could also be avoided by using salary sacrifice to take gross earnings below the £50,000 threshold.
9 Nominating a beneficiary
Pensions are an important part of tax and inheritance planning.
If a person dies before age 75 their fund can be passed on to their beneficiary tax-free, while if they die after 75 it is taxed in the same way as income.
It the beneficiary dies before age 75 they too can pass on any untouched funds tax-free - even if the original benefactor died after age 75.
"If no death benefit nomination is completed then your beneficiaries would only be able to receive your pension benefits as a lump sum," said Higham.
"This can lead to quite a significant tax charge for your loved ones if anything happens to you after age 75.
"Nominating a pension beneficiary is usually something that can be done in a matter of seconds online and can result in a massive tax saving for your loved ones."
10 Claiming relief as a non-taxpayer
Non-taxpayers can get tax relief. This includes a spouse who isn’t employed who can still pay into a pension and receive 20 per cent tax relief.
In this case, the ceiling on annual pension saving is £3,600, made up of a personal contribution of £2,880 and the taxman’s contribution of £720.
carmen.reichman@ft.com
